Currency snapshot (major pairs)

Dollar index trading at 96.1 (+0.11%)

Strength meter (today so far) – Euro -0.14%, Franc -0.15%, Yen -0.52%, GBP +0.99%

Strength meter (since last week) – Euro -0.46%, Franc -0.74%, Yen -2.00%, GBP +1.09%

EUR/USD –

Trading at 1.114

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 –

• Markit manufacturing PMI declined marginally to 51.7 in August.

Commentary –

• The Euro remains beaten over long covering in EUR/GBP. 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 1.325

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 manufacturing PMI rose to 53.3 in August.

Commentary –

• The pound rose sharply after manufacturing PMI expanded beating estimates. We expect the pound to reach parity.

USD/JPY –                      

Trading at 103.9

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 –

• Nikkei manufacturing remains weak at 49.5

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 0.986

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 –

• SVME PMI rose to 51 in August.

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.