Currency snapshot (major pairs)

Dollar index trading at 101.84 (-0.19%)

Strength meter (today so far) – Euro +0.27%, Franc -0.04%, Yen -0.22%, GBP +0.01%

Strength meter (since last week) – Euro -0.10%, Franc -0.71%, Yen -1.22%, GBP -1.09%

EUR/USD –

Trading at 1.061

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 –

• ECB would announce monetary policy at 12:45 GMT, followed by a press conference at 13:30 GMT.

Commentary –

• The euro recovered most of its loss heading for the NFP report.

GBP/USD –

Trading at 1.216

Trend meter –

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

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 –

• Industrial production declined by 0.4 percent in January, up 3.2 percent from a year ago.
• Manufacturing production is down 0.9 percent in January, up 2.7 percent from a year ago.
• UK trade deficit improves to £1.97 billion in January.
• Consumer inflation expectations rise to 2.9 percent.

Commentary –

• The pound remains depressed as Article 50 date nears. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 115.4

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• NIL

Commentary –

• The yen breached the 115 support area and now it is the worst performer of the day. Active call – Yen likely to reach 120 as key support broken.

USD/CHF –        

Trading at 1.012

Trend meter –

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

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