Currency snapshot (major pairs)

Dollar index trading at 95.35 (-0.07%)

Strength meter (today so far) – Euro +0.22%, Franc +0.10%, Yen +0.33%, GBP -0.24%

Strength meter (since last week) – Euro +0.22%, Franc +0.10%, Yen +0.33%, GBP -0.24%

EUR/USD –

Trading at 1.122

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 hovering below key resistance area around 1.13, a test likely this 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 1.293

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 –

• BBA mortgage approvals for August came at 36,997.

Commentary –

• The pound is the worst performer of the day. We expect the pound to reach parity.

USD/JPY –                      

Trading at 100.4

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 –

• BoJ will release monetary policy minutes at 23:50 GMT.
• Leading economic index for July declined to 100 and Coincident index improved marginally to 112.1

Commentary –

• The yen is the best performer of the day.  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 0.968

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