Currency snapshot (major pairs)

Dollar index trading at 95.61 (-0.16%)

Strength meter (today so far) – Euro +0.29%, Franc -0.16%, Yen +0.18%, GBP -0.10%

Strength meter (since last week) – Euro +1.09%, Franc +0.79%, Yen +0.58%, GBP -0.54%

EUR/USD –

Trading at 1.118

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support

• Long term – 1.06, Medium term – 1.08, Short term – 1.09            

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.132

Economic release today –

• NIL

Commentary –

• Not much movement to begin the week, however, Euro is trading relatively strong. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.289

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support –

• Long term – 1.2, Medium term – 1.27, Short term – 1.29 (broken)         

Resistance –

• Long term – 1.39, Medium term – 1.35, Short term – 1.34

Economic release today –

• NIL

Commentary –

• The pound is likely to remain on the weaker side over the coming months. It is down today to begin the week. We expect the pound to reach parity.

USD/JPY –                      

Trading at 100.9

Trend meter –

• Long term – Sell, Medium term – Range/ Sell, Short term – Sell

Support –

• Long term – 91, Medium term – 98, Short term – 100

Resistance –

• Long term – 111, Medium term – 107, Short term – 107

Economic release today –

• NIL

Commentary –

• The yen is marginally higher today. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5. All targets reached, new target 90 added. Yen may retrace to 111 per dollar if BOJ intervenes.

USD/CHF –        

Trading at 0.974

Trend meter –

• Long term – Buy, Medium term – Range, Short term – Range/Sell

Support –

• Long term – 0.9, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.994

Economic release today –

• Producer and import prices declined by -0.1 percent in July, down -0.8 percent from a year back.

Commentary –

• Franc is the worst performer today. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.