Currency snapshot (major pairs)

Dollar index trading at 92.35 (-0.10%)

Strength meter (today so far) – Euro +0.35%, Franc -0.13%, Yen +0.23%, GBP +0.10%

Strength meter (since last week) – Euro -0.21%, Franc -1.39%, Yen -1.27%, GBP -0.65%

EUR/USD –

Trading at 1.191

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 –

• ECB President Draghi is scheduled to speak at 13:30 GMT.

Commentary –

• The euro is down as the dollar recovers over FOMC decision. The best performer among peers. Active call – Buy euro against dollar at 1.199 with target around 1.226 and stop loss around 1.182

GBP/USD –

Trading at 1.35

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 –

• Public sector net borrowing at £5.093

Commentary –

• The pound is down this week over profit booking after a big rise last week as BoE signaled future rate hike and BoE dove Vlieghe talked of rate hike.

USD/JPY –           

Trading at 112.3

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 –

• BoJ kept monetary policy unchanged at today’s meeting.
• All industry activity index down 0.1 percent in July.

Commentary –

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

USD/CHF –

Trading at 0.973

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 –

• August trade balance came at 2.173 billion.

Commentary –

• Franc is the worst performer this week. Active call – sell pair targeting 0.92

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