Currency snapshot (major pairs)

Dollar index trading at 97.24 (+0.19%)

Strength meter (today so far) – Euro -0.15%, Franc -0.38%, Yen -0.47%, GBP +0.29%

Strength meter (since last week) – Euro -0.29%, Franc -0.86%, Yen -1.83%, GBP -0.27%

EUR/USD –

Trading at 1.1

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 –

• Current account balance came at €30.8 billion.

Commentary –

• Euro has broken below key support of 1.1 area. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.314

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 –

• Unemployment rate declined to 4.9 percent.
• Wage growth for 3 months to May came at 2.3 percent including bonus and 2.2 percent excluding it.

Commentary –

• The pound is the best performer of the day and this week. We expect the pound to reach parity.

USD/JPY –                      

Trading at 106.6

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 0.99

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 much worse performer than the euro. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.