Currency snapshot (major pairs)

Dollar index trading at 90.42 (+0.04%)

Strength meter (today so far) – Euro -0.07%, Franc +0.05%, Yen +0.43%, GBP -0.25%

Strength meter (since last week) – Euro +0.35%, Franc -0.08%, Yen +0.02%, GBP +0.77%

EUR/USD –

Trading at 1.225

Trend meter –

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

Support          

• Long term – 1.16, Medium term – 1.18, Short term – 1.2

Resistance –

• Long term – 1.25, Medium term – 1.235, Short term – 1.235

Economic release today –

• Zew economic sentiment index improved to 31.8 in January.

Commentary –

• The euro is up this week on weaker dollar. Active call – Buy targeting 1.25

GBP/USD –

Trading at 1.395

Trend meter –

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

Support –

• Long term – 1.305, Medium term – 1.335, Short term – 1.35

Resistance –

• Long term – 1.42 Medium term – 1.405, Short term – 1.38 (broken)

Economic release today –

• Public sector net borrowing declined to £0.98 billion in December.

Commentary –

• The pound is the best performer of the week. Active call-  Buy targeting 1.44

USD/JPY –           

Trading at 110.5

Trend meter –

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

Support –

• Long term – 107, Medium term – 108.4, Short term – 108.4

Resistance –

• Long term – 116, Medium term – 114.2, Short term – 114.2

Economic release today –

• BoJ kept monetary policy unchanged at today’s meeting.  

Commentary –

• The yen is timid due to lack of risk aversion and BoJ signals no tapering yet. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.961

Trend meter –

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

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 1.00

Economic release today –

• NIL

Commentary –

• Franc is the worst performer this week. Active call – Buy pair targeting 1.02

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