Currency snapshot (major pairs)

Dollar index trading at 95.99 (+0.43%)

Strength meter (today so far) – Euro -0.40%, Franc -0.41%, Yen -0.86%, GBP +0.01%

Strength meter (since last week) – Euro -0.38%, Franc -0.39%, Yen -0.88%, GBP -0.13%

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 –

• Euro zone services sentiment decline to 10 in August. Consumer confidence declined to -8.5. Industrial confidence declined to -4.4. Economic sentiment indicator declined to 103.5. Business climate declined to 0.02

Commentary –

• The Euro is down as weaker inflation weighs along with a stronger dollar. 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 –

• UK consumer credit in July declined to £1.812 billion. Consumer credit came at £3.8 billion. Money supply rose by 3.9 percent from a year ago.

Commentary –

• The pound is the best performer this week among majors but down against the 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 –

• Flash industrial production for July will be released at 23:50 GMT.

Commentary –

• The yen is the worst performer this week. 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 –

• KOF leading indicator  will be released at 7:00 GMT.

Commentary –

• Franc is moving in line with Euro again. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.