Currency snapshot (major pairs)

Dollar index trading at 97.44 (-0.15%)

Strength meter (today so far) – Euro +0.40%, Franc +0.33%, Yen +0.19%, GBP +0.26%

Strength meter (since last week) – Euro -0.04%, Franc -0.19%, Yen +0.23%, GBP +0.51%

EUR/USD –

Trading at 1.117

Trend meter –

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

Support          

• Long term – 1.07, Medium term – 1.09, Short term – 1.10

Resistance –

• Long term – 1.16, Medium term – 1.14, Short term – 1.12 (testing)

Economic release today –

• Services sentiment declines to 13
• Consumer confidence improves to -3.3
• Business climate declines to 0.9
• Economic sentiment indicator declines to 109.2
• Industrial confidence improves to 2.8

Commentary –

• The euro is consolidating around key resistance of 1.12. The dovish comments from Mario Draghi and the possibility of a snap election in Italy are weighing on the euro.

GBP/USD –

Trading at 1.285

Trend meter –

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

Support –

• Long term – 1.16, Medium term – 1.23, Short term – 1.27

Resistance –

• Long term – 1.32, Medium term – 1.305, Short term – 1.305

Economic release today –

• GFK consumer confidence report and BRC shop price report will be published at 23:00 GMT.

Commentary –

• The pound is the best performer of the week but last week it suffered a major loss against the dollar and other currencies. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 111

Trend meter –

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

Support –

• Long term – 109, Medium term – 110, Short term – 112

Resistance –

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

Economic release today –

• Flash industrial production report for April will be published at 23:30 GMT.

Commentary –

• The yen is up marginally this week; risk aversion drive still missing.

USD/CHF –        

Trading at 0.976

Trend meter –

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

Support –

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

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1

Economic release today –

• KOF leading indicator declines to 101.6 in May from 106.3

Commentary –

• Franc is the worst performer of the week so far.