Currency snapshot (major pairs)

Dollar index trading at 95.83 (-0.45%)

Strength meter (today so far) – Euro +0.58%, Franc +0.69%, Yen -1.53%, GBP +2.01%

Strength meter (since last week) – Euro +1.01%, Franc +0.56%, Yen -4.99%, GBP +3.42%

EUR/USD –

Trading at 1.116

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 –

• NIL

Commentary –

• Euro is up today fuelled by risk affinity. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.338

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 –

• BoE kept rates on hold by 8-1 majority.

Commentary –

• Pound is best performer today and this week as BoE kept rates on hold. We expect the pound to reach parity.

USD/JPY –                      

Trading at 105.7

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 – 107

Economic release today –

• NIL

Commentary –

• Yen is worst performer of the week on speculation that BoJ will intervene in the market or release fresh stimulus. 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. Yen may retrace to 111 per dollar if BOJ intervenes.

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 –

• Producer and import prices up 0.1 percent in June but down from a year back.

Commentary –

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