Dollar index trading at 94.09 (+0.20%)
Strength meter (today so far) – Euro -0.09%, Franc +0.48%, Yen -0.13%, GBP -0.83%
Strength meter (since last week) – Euro +1.21%, Franc +1.34%, Yen -0.56%, GBP +0.80%
EUR/USD –
Trading at 1.176
Trend meter –
- Long term – Sell, Medium term – Sell, Short term – Buy
Support
- Long term – 1.10, Medium term – 1.12, Short term – 1.15
Resistance –
- Long term – 1.22, Medium term – 1.18, Short term – 1.18
Economic release today –
- Flash manufacturing PMI declined to 53.3 in September.
- Services PMI rose to 54.7 in September.
Commentary –
- The euro is up this week as the dollar weakens against majors on rate hike speculation. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095; Euro might correct towards 1.22 area
GBP/USD –
Trading at 1.315
Trend meter –
- Long term – Sell, Medium term – Sell, Short term – Sell
Support –
- Long term – 1.19, Medium term – 1.23, Short term – 1.285
Resistance –
- Long term – 1.35 Medium term – 1.32, Short term – 1.32
Economic release today –
- Public sector net borrowing to £5.89 billion.
Commentary –
- The pound is still the best performer of the week on the possibility of a Brexit deal by November. However, May reportedly going to reject EU’s offering on Irish border. Active call- short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.25
USD/JPY –
Trading at 112.6
Trend meter -
- Long term – Sell, Medium term – buy, Short term – Range/Buy
Support –
- Long term – 104.2, Medium term – 106.2, Short term – 109.2
Resistance –
- Long term – 116, Medium term – 114, Short term – 112
Economic release today –
- Nikkei manufacturing PMI rose to 52.9 in September.
Commentary –
- The yen remains trapped in bull/bear fight amid risk aversion and a strong dollar. The worst performer this week on lack of risk aversion despite a weaker dollar.
USD/CHF –
Trading at 0.955
Trend meter –
- Long term – Buy, Medium term – Range/sell, Short term – Range/Buy
Support –
- Long term – 0.90, Medium term – 0.92, Short term – 0.95
Resistance –
- Long term – 1.03, Medium term – 1.00, Short term – 1.00
Economic release today –
- NIL
Commentary –
- Franc is a much worse performer than the euro this week.