Currency snapshot (major pairs)

Dollar index trading at 96.04 (-0.1%)

Strength meter (today so far) – Euro -0.16%, Franc -0.22%, Yen +0.01%, GBP +0.94%

Strength meter (since last week) – Euro -0.45%, Franc -0.62%, Yen +1.33%, GBP -1.56%

EUR/USD –

Trading at 1.108

Trend meter –

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

Support

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

Resistance –

• Long term – 1.16, Medium term – 1.145, Short term – 1.12

Economic release today –

• ECB will release monetary policy minutes at 11:30 GMT.

Commentary –

• Euro is drifting around key 1.1 support. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.304

Trend meter –

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

Support –

• Long term – 1.2, Medium term – 1.25, Short term – 1.25 

Resistance –

• Long term – 1.5, Medium term – 1.38, Short term – 1.35

Economic release today –

• Halifax house prices up 8.4 percent in June from a year back.

Commentary –

• Pound is the best performer today but the worst this week. We expect the pound to reach parity.

USD/JPY –                      

Trading at 101.1

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 100

Resistance –

• Long term – 111, Medium term – 107, Short term – 103.5

Economic release today –

• Current account for May will be announced at 23:50 GMT.

Commentary –

• Yen is down on risk affinity but still the best performer this week. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5. All targets reached, new target 90 added.

USD/CHF –        

Trading at 0.977

Trend meter –

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

Support –

• Long term – 0.9, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.994

Economic release today –

• FX reserve rose to 609 billion.
• CPI up 0.1 percent in June but down -0.4 percent from a year back.

Commentary –

• Franc is back moving in line with the euro. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.