Currency snapshot (major pairs)

Dollar index trading at 95.74 (+0.27%)

Strength meter (today so far) – Euro -0.25%, Franc -0.16%, Yen -0.49%, GBP -0.42%

Strength meter (since last week) – Euro -0.25%, Franc -0.16%, Yen -0.49%, GBP -0.42%

EUR/USD –

Trading at 1.117

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 –

• Money supply grew by 4.8 percent in July from a year back.
• Private loans grew by 1.8 percent.

Commentary –

• The Euro once again failed at key resistance around 1.13 as the dollar bounced back on rate hike hope. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01. However, in the short run, Euro might ride higher.

GBP/USD –

Trading at 1.306

Trend meter –

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

Support –

• Long term – 1.2, Medium term – 1.27, Short term – 1.29

Resistance –

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

Economic release today –

• GDP grew by 0.6 percent in the second quarter as expected. Total business investment grew by 0.5 percent and services grew by 0.5 percent.

Commentary –

• The pound is down on stronger dollar. We expect the pound to reach parity.

USD/JPY –                      

Trading at 102.3

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• NIL

Commentary –

• The yen has lost grounds since Yellen’s speech on Friday. 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 0.979

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 –

• NIL

Commentary –

• Franc is the best performer of the week. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.