Currency snapshot (major pairs)

Dollar index trading at 96.2 (+0.09%)

Strength meter (today so far) – Euro +0.06%, Franc +0.04%, Yen -0.81%, GBP -0.2%

Strength meter (since last week) – Euro +0.60%, Franc +0.18%, Yen -5.32%, GBP +3.01%

EUR/USD –

Trading at 1.112

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 –

• Trade balance for May came at €24.5 billion.

Commentary –

• Euro is consolidating around 1.11 area. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.333

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 –

• CB leading economic index will be released at 13:30 GMT.

Commentary –

• Pound is best performer today and this week as BoE kept rates on hold and as Theresa May got early elected as Prime Minister. We expect the pound to reach parity.

USD/JPY –                      

Trading at 106

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 0.981

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 –

• NIL

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.