Currency snapshot (major pairs)

Dollar index trading at 95.38 (+0.05%)

Strength meter (today so far) – Euro -0.09%, Franc +0.03%, Yen +0.00%, GBP -0.04%

Strength meter (since last week) – Euro +0.14%, Franc +0.02%, Yen +0.34%, GBP -0.01%

EUR/USD –

Trading at 1.124

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 –

• Private loans grew by 1.8 percent y/y in August.
• Money supply grew by 5.1 percent in August.

Commentary –

• The Euro remains very little mover 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 1.296

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 –

• CBI industrial trade survey index declined to -8 from 9

Commentary –

• The pound is flat for the day. In the short term, we expect the pound to drop towards 1.2 area. 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 –

• NIL

Commentary –

• The yen is still the best performer of the 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 0.969

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.