Currency snapshot (major pairs)

Dollar index trading at 93.87 (-0.20%)

Strength meter (today so far) – Euro +0.15%, Franc +0.21%, Yen -0.08%, GBP +0.29%

Strength meter (since last week) – Euro +0.28%, Franc +0.15%, Yen +0.53%, GBP +0.20%

EUR/USD –

Trading at 1.168

Trend meter –

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

Support          

• Long term – 1.12, Medium term – 1.16, Short term – 1.16

Resistance –

• Long term – 1.25, Medium term – 1.22, Short term – 1.2

Economic release today –

• Unemployment rate declined to 8.5 percent in April.
• CPI inflation up 1.1 percent in May, up 1.9 percent from a year ago.

Commentary –

• The euro recovered as the dollar declined from key resistance and as Italy is on its way to form a government, ending the crisis at least temporarily. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.14

GBP/USD –

Trading at 1.332

Trend meter –

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

Support –

• Long term – 1.32, Medium term – 1.35, Short term – 1.35 (broken)

Resistance –

• Long term – 1.425 Medium term – 1.39, Short term – 1.37

Economic release today –

• Net lending to individuals at £5.7 billion.
• Mortgage approvals at 62,455 in April
• M4 money supply up 1.1 percent y/y in April.

Commentary –

• The pound recovered as Italian political tensions ease and dollar declined. Active call-  short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.3

USD/JPY –           

Trading at 108.8

Trend meter -

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

Support –

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

Resistance –

• Long term – 111, Medium term – 109, Short term – 109

Economic release today –

• Housing starts up 0.3 percent y/y in April.
• Construction orders up 4 percent y/y in April.

Commentary –

• The yen is still the best performer of the week.

USD/CHF –

Trading at 0.986

Trend meter –

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

Support –

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

Resistance –

• Long term – 1.03, Medium term – 1.00, Short term – 1.00

Economic release today –

• KOF leading indicator declined to 100 in May.
• Zew survey index rose to 28 in May.
• SNB chairman Jordon is set for a speech at 14:45 GMT.

Commentary –

• Franc is the worst performer of the week so far but recovered from loss and now up against the dollar.

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