Currency snapshot (major pairs)

Dollar index trading at 94.75 (-0.29%)

Strength meter (today so far) – Euro +0.33%, Franc +0.17%, Yen +0.58%, GBP +0.65%

Strength meter (since last week) – Euro +0.33%, Franc +0.17%, Yen +0.58%, GBP +0.65%

EUR/USD –

Trading at 1.125

Trend meter –

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

Support

• Long term – 1.08, Medium term – 1.115, Short term – 1.125   

Resistance –

• Long term – 1.17, Medium term – 1.153, Short term – 1.147

Economic release today –

• NIL

Commentary –

• Euro is trying to crawl back last week’s loss. 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 1.448

Trend meter –

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

Support –

• Long term – 1.4, Medium term – 1.4, Short term – 1.427 

Resistance –

• Long term – 1.467, Medium term – 1.45, Short term – 1.45

Economic release today –

• NIL

Commentary –

• Pound remains as best performer today, riding on Obama’s weekend appeal to Britons to stay in EU. 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 111.1

Trend meter –

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

Support –

• Long term – 98.5, Medium term – 108, Short term – 108

Resistance –

• Long term – 121, Medium term – 115, Short term – 111.2

Economic release today –

• Leading economic index declined to 96.8, while co-incident index improved to 110.7

Commentary –

• Yen gained some ground after last week’s 2.7% decline. 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 0.975

Trend meter –

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

Support –

• Long term – 0.905, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.98

Economic release today –

• NIL

Commentary –

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