Currency snapshot (major pairs)

Dollar index trading at 95.74 (+0.1%)

Strength meter (today so far) – Euro -0.27%, Franc -0.01%, Yen -0.75%, GBP +0.44%

Strength meter (since last week) – Euro -0.21%, Franc -0.20%, Yen -2.18%, GBP +1.62%

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 –

• Producer price index rose by 0.1 percent in July, down -2.8 percent from a week ago.

Commentary –

• The Euro remains beaten despite weakness in the dollar over weaker NFP report. 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 1.332

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 construction PMI rose to 49.2 in August.

Commentary –

• The pound is the best performer of the day and this week after manufacturing PMI expanded beating estimates. We expect the pound to reach parity.

USD/JPY –                      

Trading at 104.2

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 –

• Consumer confidence improved marginally to 42 in August.

Commentary –

• The yen is the worst performer of the day and 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 0.981

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.