Currency snapshot (major pairs)

Dollar index trading at 96.05 (-0.06%)

Strength meter (today so far) – Euro +0.15%, Franc +0.14%, Yen -0.23%, GBP +0.04%

Strength meter (since last week) – Euro -0.07%, Franc -0.60%, Yen -1.78%, GBP -1.83%

EUR/USD –

Trading at 1.122

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 –

• Markit services PMI for September came at 52.2
• Retail sales declined by 0.1 percent in August, up 0.6 percent from a year ago.

Commentary –

• The euro rose on taper rumor, still struggling within 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 1.273

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 –

• Services PMI rose to 52.6 in September.

Commentary –

• The pound is the worst performer of the week as Brexit continues to weigh. 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 103.1

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 –

• Markit services PMI came at 48.2

Commentary –

• The yen is losing grounds fast, catching to the performance of the sterling.  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 0.977

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 a 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.