Currency snapshot (major pairs)

Dollar index trading at 95.53 (-0.3%)

Strength meter (today so far) – Euro +0.27%, Franc +0.37%, Yen +1.18%, GBP -0.36%

Strength meter (since last week) – Euro +0.44%, Franc +0.36%, Yen +0.80%, GBP -1.26%

EUR/USD –

Trading at 1.117

Trend meter –

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

Support

• Long term – 1.08, Medium term – 1.10, Short term – 1.10  

Resistance –

• Long term – 1.2, Medium term – 1.16, Short term – 1.13

Economic release today –

• Euro Zone manufacturing PMI came at 51.5

Commentary –

• Euro is best performer this week, looking to test 1.12 handle.

GBP/USD –

Trading at 1.445

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 – 1.49, Medium term – 1.47, Short term – 1.47

Economic release today –

• Nationwide house prices rose 4.7% y/y in May. UK manufacturing PMI improved to 50.1

Commentary –

• Pound has been hit hard by Guardian poll showing lead for exit camp

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 –

• NIL

Commentary –

• Yen is best performer today and this week, boosted by Prime Minister Abe’s tax hike delay. 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 0.989

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 – 1

Economic release today –

• First quarter GDP grew 0.7% y/y.
• Retail sales declined -1.9% y/y in May
• SVME PMI rose to 55.8

Commentary –

• Franc is moving in line with Euro. We expect Franc to strengthen against Dollar to as high as 0.9 area in the medium term.