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USD-CHF 1.0388/91...Ranged with a bullish bias

R: 1.0500 / 1.0550 / 1.0615-35
S: 1.0400-384 / 1.0348 / 1.0281

"We continue to hold our morning view on the pair."

USD/JPY 86.34

USD/JPY Open 86.69 High 87.49 Low 86.18 Close 86.82

Dollar/Yen continued decreasing on Thursday, in converse with the negative Interbank sentiment at around +15%. The currency couple depreciated from 87.49 to 86.62 yesterday, closing the day at 86.82. Today the bears took further advantage down to 86.27.

The euro held steady at $1.3077, not far from a 12-week high of $1.3107 hit on Thursday, when data showed a jump in euro zone economic sentiment to a 28-month high and a decline in German unemployment. Key technical resistance stood around $1.3120/25, which was the 38.2 percent retracement of the December 2009 high at $1.5141 to the June low of $1.1876, traders said. Previous resistance of $1.3050 was providing support. A raft of surprisingly upbeat economic data from Germany and receding sovereign credit risk concerns have buoyed the euro.

The Euro extends rally today with support from solid employment data from Germany and improving confidence in Eurozone. Germ! any unemployment rate dropped to 7.6% in July, hitting the lowest level since November 2008. Economic confidence rose to a two year high of 101.3 in July versus expectation of 99. Industrial confidence and services confidence also improved more than expected to -4 and 6 respectively while consumer confidence was unchanged at -14. Additionally, dollar is pressure as a Moody's analysts is quoted saying that US's credit rating would need to be reviewed if the current projections for debt are realized.

USD-CHF 1.0450/53...Ranged with a bullish bias

R: 1.0550 / 1.0615-35 / 1.0700
S: 1.0400-384 / 1.0348 / 1.0250

Dollar-Swiss has fallen in the European session today and is currently trading below 1.0450. We see 1.0450-00 to be a good Support region which may hold followed by some upmove in the coming sessions over today and tomorrow. Please note that 1.0447 is the suggested Max Low for the day.

The 30-minute chart of the AUD/JPY has bounced higher within a very strong downtrend. The nine-bar Autochartist Initial Trend reading indicates that bearish sentiment still dominates current price action. The Channel Down breakout through the pattern's top line is therefore triggering an aggressive reversal entry long. The buy taken at the downtrend line break at 78.08 (E) should not be expected to travel much higher than recent resistance (at least not immediately), which means that prices will be met with selling pressure between the bottom of the Forecast range at 78.41 (F) and the near-term high at 78.44.

USD/JPY 87.21

USD/JPY Open 87.45 High 88.10 Low 87.03 Close 87.47

Dollar/Yen decreased on Wednesday, losing part of the gains from the previous day, in line with the negative Interbank sentiment at nearly -5%. The currency couple depreciated from 88.10 to 87.30 yesterday, closing the day at 87.47.

The short term bias in EUR/USD has turned neutral since its unable to break fast 1.31 levels. While another rise could still be seen, we'd continue to look for reversal signal as EUR/USD approaches cluster level of 1.3105/3123 (38.2% retracement of 1.5143 to 1.1875 at 1.3123) . On the downside, break of 1.2731 will indicate that EUR/USD has topped out and target 1.2450 support zone first. The increasing risk appetite and poor data from US has led to these gigantic moves in euro. Whether the long term trend has changed still needs to be confirmed. (EURUSD - 1.3012). Neutral

GBP/USD 1.5612

GBP/USD Open 1.5599 High 1.5634 Low 1.5567 Close 1.5597

On Wednesday Pound/Dollar continued with slight ascending, in line with the positive Interbank sentiment at around +13%. The Cable appreciated from 1.5567 to 1.5634 yesterday, closing the day at 1.5597.