Currency snapshot (major pairs)

Dollar index trading at 94.05 (+0.49%)

Strength meter (today so far) – Euro -0.69%, Franc +0.14%, Yen +0.88%, GBP -0.96%

Strength meter (since last week) – Euro -0.54%, Franc +0.67%, Yen +0.92%, GBP -1.11%

EUR/USD –

Trading at 1.17

Trend meter –

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

Support          

• Long term – 1.16, Medium term – 1.18, Short term – 1.18 (broken)

Resistance –

• Long term – 1.27, Medium term – 1.25, Short term – 1.22

Economic release today –

• Flash PMI composite down to 54.1 in May from 55.1 in April.

Commentary –

• The euro gave up earlier gains as economic and sentiment data softens. Active Call - Sell Euro at 1.218 with 1.17 as target

GBP/USD –

Trading at 1.331

Trend meter –

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

Support –

• Long term – 1.32, Medium term – 1.354, Short term – 1.354 (broken)

Resistance –

• Long term – 1.425 Medium term – 1.39, Short term – 1.37

Economic release today –

• RPI up 3.4 percent y/y in April. (+0.1 percent from prior)
• HPI up 4.2 percent y/y in April. (-0.2 percent).
• PPI core output up 2.4 percent y/y. (-0.3 percent)
• PPI input up 5.3 percent y/y. (+0.9 percent)
• Core CPI up 2.1 percent y/y. (-0.2 percent).
• CPI up 2.4 percent y/y. (-0.1 percent).

Commentary –

• The pound is the worst performer of the week as inflation numbers disappoint along with economic data. Active call-  short term sell targeting 1.375 (target reached); extended to 1.354 (target reached)

USD/JPY –           

Trading at 109.8

Trend meter -

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

Support –

• Long term – 101, Medium term – 104.2, Short term – 106.2

Resistance –

• Long term – 111, Medium term – 109, Short term – 109

Economic release today –

• NIL

Commentary –

• The yen is the best performer this week despite a strong dollar and thanks to risk aversion. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.991

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 better performer than the euro this week benefiting from risk aversion.

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