Currency snapshot (major pairs)

Dollar index trading at 94.68 (-0.28%)

Strength meter (today so far) – Euro +0.74%, Franc +0.33%, Yen +0.14%, GBP -0.04%

Strength meter (since last week) – Euro +1.52%, Franc +1.33%, Yen +2.07%, GBP +0.32%

EUR/USD –

Trading at 1.132

Trend meter –

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

Support                      

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

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.132

Economic release today –

• ECB kept rates on hold today.

Commentary –

• The euro is higher as ECB signals no immediate extension of QE. The euro is testing key resistance around 1.132 Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01. However, in the short run, Euro might ride higher.

GBP/USD –

Trading at 1.333

Trend meter –

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

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 remains relatively weak as Carney signaled possibility of further rate cuts. We expect the pound to reach parity.

USD/JPY –                      

Trading at 101.7

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• NIL

Commentary –

• The yen remains the best performer of the 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. Yen may retrace to 111 per dollar if BOJ intervenes.

USD/CHF –        

Trading at 0.966

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 weaker performer that the euro this week.. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.