Currency snapshot (major pairs)

Dollar index trading at 91.85 (+0.29%)

Strength meter (today so far) – Euro -0.21%, Franc -0.09%, Yen -0.02%, GBP -1.04%

Strength meter (since last week) – Euro -1.64%, Franc -1.71%, Yen -1.55%, GBP -1.57%

EUR/USD –

Trading at 1.208

Trend meter –

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

Support          

• Long term – 1.18, Medium term – 1.2, Short term – 1.22 (broken)

Resistance –

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

Economic release today –

• NIL

Commentary –

• The euro declining sharply as dollar recovers riding on higher interest rates and as key support broken

GBP/USD –

Trading at 1.377

Trend meter –

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

Support –

• Long term – 1.35, Medium term – 1.385, Short term – 1.385 (broken)

Resistance –

• Long term – 1.50 Medium term – 1.485, Short term – 1.435

Economic release today –

• Nationwide house price index grew 0.2 percent in April, up 2.6 percent from a year ago.
• UK GDP grew 1.2 percent y/y in the first quarter.

Commentary –

• The pound declined as BoE governor Carney signaled slower pace of hikes and as GDP number disappointed. Active call-  short term sell targeting 1.375 (target reached); extended to 1.354

USD/JPY –           

Trading at 109.3

Trend meter -

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

Support –

• Long term – 101, Medium term – 104.2, Short term – 106.2

Resistance –

• Long term – 111, Medium term – 109, Short term – 109 (testing)

Economic release today –

• BoJ kept monetary policy unchanged at today’s meeting.
• Construction orders down 4 percent y/y in March.
• Housing starts down 8.3 percent y/y in March.

Commentary –

• The yen is down this week as the dollar recovers. Active call – Buy yen targeting 101

USD/CHF –           

Trading at 0.991

Trend meter –

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

Support –

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

Resistance –

• Long term – 1.03, Medium term – 0.98, Short term – 0.98 (broken)

Economic release today –

• NIL

Commentary –

• Franc is the worst performer of the week.

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