Currency snapshot (major pairs)

Dollar index trading at 94.74 (+0.18%)

Strength meter (today so far) – Euro -0.29%, Franc -0.25%, Yen -0.28%, GBP +0.55%

Strength meter (since last week) – Euro -0.13%, Franc -0.97%, Yen -0.77%, GBP +1.23%

EUR/USD –

Trading at 1.128

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 – 1.2, Medium term – 1.17, Short term – 1.17

Economic release today –

• Euro Zone CPI declined -0.2% y/y in April, core CPI up 0.7% y/y.

Commentary –

• Euro is failing to find support at 1.13. Likely to decline in the short run. Our longer term target for Euro to reach as high as 1.20 against Dollar.

GBP/USD –

Trading at 1.455

Trend meter –

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

Support –

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

Resistance –

• Long term – 1.47, Medium term – 1.467, Short term – 1.467

Economic release today –

• Unemployment rate remained at 5.1%, as of March. Wage growth 2% including bonus and 2.1% excluding it.

Commentary –

• Pound is best performer this week, sharply rose over queen’s speech today after initial drop after ILO unemployment report.

USD/JPY –                      

Trading at 109.3

Trend meter –

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

Support –

• Long term – 98.5, Medium term – 102.8, Short term – 105

Resistance –

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

Economic release today –

• Japan’s GDP rose at 1.7% annualized rate.

Commentary –

• Yen is down this week over favorable risk environment. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5 First three target reached, new target 90 added.

USD/CHF –                                                                                         

Trading at 0.982

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 –

• Producer and import prices rose 0.3% in April, down -2.4% from a year ago.

Commentary –

• Franc is worst performer this week. We expect Franc to strengthen against Dollar to as high as 0.9 area in the medium term.