Currency snapshot (major pairs)

Dollar index trading at 93.87 (+0.44%)

Strength meter (today so far) – Euro -0.66%, Franc -0.23%, Yen -0.12%, GBP -0.16%

Strength meter (since last week) – Euro -1.05%, Franc -0.62%, Yen -0.86%, GBP -1.07%

EUR/USD –

Trading at 1.169

Trend meter –

• Long term – Buy, Medium term – Buy, Short term – Breakout/ Buy

Support          

• Long term – 1.12, Medium term – 1.14, Short term – 1.16

Resistance –

• Long term – 1.22, Medium term – 1.19, Short term – 1.19

Economic release today –

• July trade balance came at €26.6 billion. CPI headline and core, both up 1.3 percent y/y in July.

Commentary –

• The euro is the worst performer of the day as dollar recovers and ECB voices concern over Euro’s strength. Further downside correction likely.

GBP/USD –

Trading at 1.287

Trend meter –

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

Support –

• Long term – 1.26, Medium term – 1.275, Short term – 1.293

Resistance –

• Long term – 1.345, Medium term – 1.32, Short term – 1.32

Economic release today –

• Retail sales up 1.3 percent y/y in July, up 1.5 percent y/y excluding fuel.

Commentary –

• The pound is struggling as it failed to clear key down trend line. Active call – Sell pound at 1.291 with target at 1.24

USD/JPY –           

Trading at 110.1

Trend meter –

• Long term – Sell, Medium term – sell, Short term – Range/Sell

Support –

• Long term – 107, Medium term – 108.4, Short term – 110

Resistance –

• Long term – 116, Medium term – 114.2, Short term – 114.2

Economic release today –

• NIL

Commentary –

• The yen lost grounds as North Korean tensions ease but is likely to gain further against the dollar. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.967

Trend meter –

• Long term – Buy, Medium term – Range/sell, Short term – Range/Sell

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 0.987

Economic release today –

• NIL

Commentary –

• Franc is the best performer of the week. Active call – sell pair targeting 0.92

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