Currency snapshot (major pairs)

Dollar index trading at 100.22 (+0.05%)

Strength meter (today so far) – Euro -0.07%, Franc -0.14%, Yen -0.34%, GBP +0.33%

Strength meter (since last week) – Euro -0.82%, Franc -0.53%, Yen +0.04%, GBP +0.67%

EUR/USD –

Trading at 1.068

Trend meter –

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

Support                      

• Long term – 1.01, Medium term – 1.032, Short term – 1.032

Resistance –

• Long term – 1.11, Medium term – 1.084, Short term – 1.084

Economic release today –

• NIL

Commentary –

• The euro remains the worst performer of the week so far over concerns with French election. Dollar’ strength is hurting too.

GBP/USD –

Trading at 1.257

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – range/buy

Support –

• Long term – 1.16, Medium term – 1.2, Short term – 1.2

Resistance –

• Long term – 1.32, Medium term – 1.27, Short term – 1.27

Economic release today –

• RICS housing price balance for January rose to 25 percent.

Commentary –

• The pound rose despite Brexit approval in the UK parliament. The best performer of the week so far. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 112.4

Trend meter –

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

Support –

• Long term – 98, Medium term – 105, Short term – 112

Resistance –

• Long term – 121, Medium term – 120, Short term – 119

Economic release today –

• Flash report shows Machine tools orders are up 3.5 percent y/y.

Commentary –

• The yen lost some of its lusture as the equities rise. Active call- Sell USD/JPY targeting 110.

USD/CHF –        

Trading at 0.997

Trend meter –

• Long term – Buy, Medium term – Range/Buy, Short term – Range/sell

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 0.98

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• Unemployment rate for January came at 3.3 percent.

Commentary –

• Franc is a much better performer than the euro this week. Franc is likely to weaken against the dollar in the longer run.  Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14