Currency snapshot (major pairs)

Dollar index trading at 96.18 (+0.47%)

Strength meter (today so far) – Euro -0.37%, Franc -0.66%, Yen -0.64%, GBP -0.75%

Strength meter (since last week) – Euro -0.60%, Franc -0.96%, Yen -1.20%, GBP -1.60%

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 –

• Eurozone producer price index declined by 0.2 percent in August, down 2.1 percent from a year ago.

Commentary –

• The euro continues to struggle within a small range. 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 1.276

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 –

• Construction PMI rose to 52.3 in September.

Commentary –

• The pound is the worst performer of the day and the week as the focus turns on Brexit. 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 102.5

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 rose to 43 in September.

Commentary –

• The yen trades weaker with no signs of risk aversion.  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 0.98

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 much worse performer than the euro this week. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.