Currency snapshot (major pairs)

Dollar index trading at 91.86 (-0.18%)

Strength meter (today so far) – Euro +0.13%, Franc -0.01%, Yen -0.50%, GBP -0.19%

Strength meter (since last week) – Euro +0.13%, Franc -0.01%, Yen -0.50%, GBP -0.19%

EUR/USD –

Trading at 1.199

Trend meter –

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

Support          

• Long term – 1.14, Medium term – 1.16, Short term – 1.175

Resistance –

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

Economic release today –

• July current account balance came at €32.5 billion.
• Construction output up 3.4 percent y/y in July.
• Zew survey economic sentiment index edged up to 31.7

Commentary –

• The euro is consolidating ahead of FOMC this week. The best performer of the week so far. Active call – Buy euro against dollar at 1.199 with target around 1.226 and stop loss around 1.182

GBP/USD –

Trading at 1.349

Trend meter –

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

Support –

• Long term – 1.28, Medium term – 1.295, Short term – 1.313

Resistance –

• Long term – 1.38 Medium term – 1.36, Short term – 1.36

Economic release today –

• NIL

Commentary –

• The pound is the worst performer of the week after a big rise last week as BoE signaled future rate hike and BoE dove Vlieghe talked of a rate hike.

USD/JPY –           

Trading at 111.6

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• August trade balance report will be published at 23:50 GMT.

Commentary –

• The yen remains downbeat as haven demand fades and BoJ remains dovish. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.963

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• NIL

Commentary –

• Franc is a much worse performer than the euro this week. Active call – sell pair targeting 0.92

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest