Currency snapshot (major pairs)

Dollar index trading at 100.01 (-0.13%)

Strength meter (today so far) – Euro +0.32%, Franc -0.01%, Yen -0.18%, GBP +0.25%

Strength meter (since last week) – Euro +0.32%, Franc -0.01%, Yen -0.18%, GBP +0.25%

EUR/USD –

Trading at 1.076

Trend meter –

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

Support          

• Long term – 1.032, Medium term – 1.05, Short term – 1.06

Resistance –

• Long term – 1.09, Medium term – 1.075 (broken/testing), Short term – 1.072 (broken)

Economic release today –

• Fourth quarter Labor cost report will be published at 10:00 GMT.

Commentary –

• The euro looks like to be breaking a key resistance, further rise likely.

GBP/USD –

Trading at 1.242

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 –

• Rightmove House price index is up 2.3 percent y/y in January.
• MPC member Haldane is scheduled to speak at 18:20 GMT.

Commentary –

• Pound could come under renewed selling pressure as Forbes effect of last week fades.. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 112.7

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 is the worst performer of the day so far. Active call – Yen likely to reach 120 as key support broken.

USD/CHF –        

Trading at 0.998

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 flat on the dollar.  Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14