Currency snapshot (major pairs)

Dollar index trading at 96.97 (-0.32%)

Strength meter (today so far) – Euro +0.22%, Franc +0.09%, Yen +1.22%, GBP +0.19%

Strength meter (since last week) – Euro +0.36%, Franc +0.17%, Yen +1.57%, GBP +0.15%

EUR/USD –

Trading at 1.101

Trend meter –

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

Support

• Long term – 1.06, Medium term – 1.08, Short term – 1.09   

Resistance –

• Long term – 1.16, Medium term – 1.116, Short term – 1.116

Economic release today –

• NIL

Commentary –

• Euro is still struggling around 1.1, focus is on Fed this week. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.312

Trend meter –

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

Support –

• Long term – 1.2, Medium term – 1.27, Short term – 1.29 

Resistance –

• Long term – 1.39, Medium term – 1.35, Short term – 1.34

Economic release today –

• NIL

Commentary –

• The pound is treading water awaiting further cue. We expect the pound to reach parity.

USD/JPY –                      

Trading at 104.3

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 –

• Leading economic index declined to 99.7 and coincident index declined to 109.9
• Corporate service prices will be released at 23:50 GMT.

Commentary –

• Yen rose sharply as risk aversion returned in the market and finance minister Taro Aso said that the government is yet to decide on the fiscal stimulus package. 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 0.985

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.