Currency snapshot (major pairs)

Dollar index trading at 94.56 (-0.22%)

Strength meter (today so far) – Euro +0.32%, Franc +0.10%, Yen +0.27%, GBP -0.01%

Strength meter (since last week) – Euro -0.94%, Franc -1.64%, Yen -0.82%, GBP +0.35%

EUR/USD –

Trading at 1.131

Trend meter –

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

Support

• Long term – 1.048, Medium term – 1.07, Short term – 1.108

Resistance –

• Long term – 1.15, Medium term – 1.147, Short term – 1.147

Economic release today –

• NIL

Commentary –

• Euro is best performer today, focus is on ECB later in the week. Our longer term target for Euro to reach as high as 1.20 against Dollar. Euro may drop towards 1.12 area in the near term before buying re-begin.

GBP/USD –

Trading at 1.418

Trend meter –

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

Support –

• Long term – 1.35, Medium term – 1.38, Short term – 1.406          

Resistance –

• Long term – 1.463, Medium term – 1.45, Short term – 1.436

Economic release today –

• NIL

Commentary –

• Pound is testing resistance around 1.42 area. We are withdrawing our bull call for GBP/USD as price broke below 1.406 support. Likely to drop further now. We expect Pound to reach as low as 1.32 area.

USD/JPY –                      

Trading at 108.4

Trend meter –

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

Support –

• Long term – 98.5, Medium term – 108 (testing), Short term – 108 (testing)

Resistance –

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

Economic release today –

• NIL

Commentary –

• Yen gave up earlier gains as equities and oil recovered. 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 0.965

Trend meter –

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

Support –

• Long term – 0.905, Medium term – 0.945, Short term – 0.95

Resistance –

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

Economic release today –

• NIL

Commentary –

• Franc need to break 0.95 resistance for further gains. We expect Franc to strengthen against Dollar to as high as 0.9 area.