Currency snapshot (major pairs)

Dollar index trading at 93.84 (+0.02%)

Strength meter (today so far) – Euro +0.08%, Franc +0.08%, Yen -0.08%, GBP -0.30%

Strength meter (since last week) – Euro -0.08%, Franc -0.29%, Yen -0.91%, GBP -0.36%

EUR/USD –

Trading at 1.176

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 –

• Industrial production declined by 0.9 percent in April, up 1.7 percent from a year ago.
• Employment rose by 0.4 percent in the first quarter, up 1.4 percent from a year ago.

      Commentary –

• The euro gave up earlier gains as political landscape in EU heats up over immigration. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.14; likely to correct towards 1.2 area

GBP/USD –

Trading at 1.333

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 –

• May RPI came at 3.3 percent y/y.
• HPI at 3.9 percent.
• PPI core at 2.1 percent.
• PPI input up 9.2 percent.
• PPI output up 2.9 percent.
• CPI inflation up 2.1 percent y/y.

Commentary –

• The pound is down this week as the dollar recovers. 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 110.5

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 (broken)

Economic release today –

• NIL

Commentary –

• The yen is the worst performer of the week thanks to the lack of risk aversion.

USD/CHF –

Trading at 0.987

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 –

• Fourth quarter industrial production up 9 percent y/y.
• Producer and import price inflation up 3.2 percent.

Commentary –

• Franc is a much weaker performer than the euro this week.

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