Currency snapshot (major pairs)

Dollar index trading at 95.13 (-0.39%)

Strength meter (today so far) – Euro +0.44%, Franc +0.60%, Yen -0.23%, GBP +0.32%

Strength meter (since last week) – Euro +0.79%, Franc +1.17%, Yen +1.28%, GBP +0.58%

EUR/USD –

Trading at 1.124

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 –

• Flash consumer confidence data is scheduled at 14:00 GMT.

Commentary –

• The euro rises to test resistance around 1.13. 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 1.309

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 –

• CB Industrial trend survey came at -5, same as prior.
• BoE governor Carney is scheduled to speak at 17:00 GMT.

Commentary –

• The pound turned green for the week on dovish Fed Reserve, still the worst performer. We expect the pound to reach parity.

USD/JPY –                      

Trading at 100.6

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 is back testing the 100 mark.  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 0.967

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 the best performer this week and a much better performer than the euro this week so far. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.