Currency snapshot (major pairs)

Dollar index trading at 98.48 (+0.22%).

Strength meter (today so far) - Euro -0.21%, Franc -0.22%, Yen -0.39%, GBP +0.28%

Strength meter (since last week) - Euro -0.72%, Franc -0.39%, Yen -0.37%, GBP +1.03%

EUR/USD -

Trading at 1.085

Trend meter -

• Long term - Buy, Medium term - Range/Buy, Short term - Sell

Support

• Long term - 1.048, Medium term - 1.07, Short term - 1.078

Resistance -

• Long term - 1.15, Medium term - 1.137, Short term - 1.105

Economic release today -

• Producer price index dropped -1% in January, down -2.9% from a year ago.

Commentary -

• Euro in slow but steady decline as probability increasing for further ECB actions.

GBP/USD -

Trading at 1.4

Trend meter -

• Long term - Sell, Medium term - Sell, Short term - Range/Sell

Support -

• Long term - 1.35, Medium term - 1.35, Short term - 1.38

Resistance -

• Long term - 1.463, Medium term - 1.425, Short term - 1.403

Economic release today -

• UK construction PMI came at 54.2 for January.

Commentary -

• Pound is the best performer today and this week, largely due to profit booking and short squeeze.

USD/JPY -                      

Trading at 114.4

Trend meter -

• Long term - Sell, Medium term - Range/ Sell, Short term - Sell

Support -

• Long term - 98.5, Medium term - 108, Short term - 110

Resistance -

• Long term - 121, Medium term - 117, Short term - 115

Economic release today -

• NIL

Commentary -

• Yen is worst performer since yesterday on fading risk aversion Active call - Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5

USD/CHF -                                                                                         

Trading at 1.002

Trend meter -

• Long term - Buy, Medium term - Range, Short term - Range/Sell

Support -

• Long term - 0.905, Medium term - 0.945, Short term - 0.98

Resistance -

• Long term - 1.174, Medium term - 1.07, Short term - 1.035

Economic release today -

• Fourth quarter GDP increased by 0.4%.

Commentary -

• Franc is down in line with Euro.