Currency snapshot (major pairs)

Dollar index trading at 101.88 (-0.27%)

Strength meter (today so far) – Euro +0.54%, Franc +0.21%, Yen -0.02%, GBP -0.32%

Strength meter (since last week) – Euro +0.03%, Franc -0.57%, Yen -2.12%, GBP -1.77%

EUR/USD –

Trading at 1.056

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 – 1.09, Medium term – 1.07, Short term – 1.07

Economic release today –

• Markit services PMI marginally declined to 55.5 in February.
• Retail sales is down -0.1 percent in January, up 1.2 percent from a year ago.

Commentary –

• The euro recovered from some of its loss as the dollar is down across the board. The focus is on Janet Yellen’s speech tonight.

GBP/USD –

Trading at 1.223

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 – 1.25

Economic release today –

• Markit services PMI declines to 53.3 in February.

Commentary –

• The Scottish independence fear is pushing down the pound. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 114.4

Trend meter –

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

Support –

• Long term – 107, Medium term – 109, Short term – 112

Resistance –

• Long term – 121, Medium term – 119, Short term – 115

Economic release today –

• Markit services PMI declines to 51.3 in February.

Commentary –

• The yen is the worst performer of the week as the equities continue to rise and the dollar strengthens.

USD/CHF –        

Trading at 1.011

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 –

• NIL

Commentary –

• Franc is much worse performer than the euro this week.  Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14