Currency snapshot (major pairs)

Dollar index trading at 95.94 (+0.11%)

Strength meter (today so far) – Euro +0.02%, Franc +0.12%, Yen +0.06%, GBP -0.61%

Strength meter (since last week) – Euro +0.24%, Franc -0.01%, Yen +0.06%, GBP -0.28%

EUR/USD –

Trading at 1.117

Trend meter –

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

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 –

• The euro is the best performer of the week. 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 1.295

Trend meter –

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

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 –

• NIL

Commentary –

• The pound is the worst performer this week, heading for a test of support around 1.29 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 101.8

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 –

• Trade balance for August will be reported at 23:50 GMT.

Commentary –

• The yen volatility remains low this week so far as the focus is on BoJ tomorrow.  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 –

• Trade balance for August came at 3.02 billion

Commentary –

• Franc is likely to move in line with euro. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.