Currency snapshot (major pairs)

Dollar index trading at 91.99 (-0.20%)

Strength meter (today so far) – Euro +0.15%, Franc +0.16%, Yen +0.39%, GBP -0.08%

Strength meter (since last week) – Euro +0.18%, Franc -0.96%, Yen -1.04%, GBP -0.17%

EUR/USD –

Trading at 1.196

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 –

• Flash market manufacturing PMI up 58. 2 in September.
• Services PMI increases to 55.6 in September.

Commentary –

• The euro recovered from FOMC induced loss and now positive for the week. Active call – Buy euro against dollar at 1.199 with target around 1.226 and stop loss around 1.182

GBP/USD –

Trading at 1.356

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 –

• CBI industrial survey order index declined to 7 in September from 13 last month.
• UK Prime Minister Theresa May is scheduled to speak on Brexit today.

Commentary –

• The pound is down marginally 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

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 –

• NIL

Commentary –

• The yen remains downbeat but up today over speculation of another nuclear test by North Korea. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.968

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 this week than the euro. Active call – sell pair targeting 0.92