Currency snapshot (major pairs)

Dollar index trading at 89.09 (+0.49%)

Strength meter (today so far) – Euro -0.49%, Franc -0.63%, Yen -0.86%, GBP -0.81%

Strength meter (since last week) – Euro +0.16%, Franc -0.36%, Yen -1.70%, GBP +0.01%

EUR/USD –

Trading at 1.245

Trend meter –

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

Support          

• Long term – 1.18, Medium term – 1.2, Short term – 1.22

Resistance –

• Long term – 1.25, Medium term – 1.25, Short term – 1.25

Economic release today –

• Producer price inflation up 0.2 percent in December, up 2.2 percent from a year ago.

Commentary –

• The euro is the best performer of the week. Active call – target  reached1.25

GBP/USD –

Trading at 1.414

Trend meter –

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

Support –

• Long term – 1.35, Medium term – 1.385, Short term – 1.385

Resistance –

• Long term – 1.50 Medium term – 1.485, Short term – 1.435

Economic release today –

• Markit construction PMI came at 50.2 in January.

Commentary –

• The pound is flat for the week. Active call-  Target reached at 1.43

USD/JPY –           

Trading at 110.4

Trend meter –

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

Support –

• Long term – 107, Medium term – 108.4, Short term – 108.4 (testing)

Resistance –

• Long term – 116, Medium term – 112, Short term – 110

Economic release today –

• NIL

Commentary –

• The yen declined sharply as BoJ offered to buy unlimited amount of JGBs to lower rising yield. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.933

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 – 1.03, Medium term – 0.98, Short term – 0.95

Economic release today –

• NIL

Commentary –

• Franc is a much worse performer than the euro this week. Active call – Buy pair targeting 1.02

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