Currency snapshot (major pairs)

Dollar index trading at 94.91 (+0.14%)

Strength meter (today so far) – Euro -0.23%, Franc -0.04%, Yen -0.15%, GBP +0.11%

Strength meter (since last week) – Euro +1.30%, Franc +1.22%, Yen +2.03%, GBP +0.86%

EUR/USD –

Trading at 1.129

Trend meter –

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

Support

• Long term – 1.048, Medium term – 1.07, Short term – 1.08

Resistance –

• Long term – 1.15, Medium term – 1.137, Short term – 1.137

Economic release today –

• Labour cost edges up by 1.3% in fourth quarter.

Commentary –

• Euro is retracing today after two days big gains. Our longer term target for Euro to reach as high as 1.20 against Dollar. However in the short run it might find resistance around 1.143 area.

GBP/USD –

Trading at 1.449

Trend meter –

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

Support –

• Long term – 1.35, Medium term – 1.38, Short term – 1.41

Resistance –

• Long term – 1.463, Medium term – 1.45, Short term – 1.45

Economic release today –

• BOE released its quarterly bulletin today.

Commentary –

• Pound is best performer today. Pound has finally started responding according to our expectations. Weaker Dollar and cheer pound is doing the trick. Likely to gain towards 1.5 area.

USD/JPY –                      

Trading at 111.5

Trend meter –

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

Support –

• Long term – 98.5, Medium term – 108, Short term – 110

Resistance –

• Long term – 121, Medium term – 117, Short term – 115

Economic release today –

• NIL

Commentary –

• Yen is struggling after rising to 17 month high. Yen rose to 17 month high against Dollar today but dropped sharply largely due to fading risk aversion and profit bookings. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5

USD/CHF –                                                                                         

Trading at 0.967

Trend meter –

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

Support –

• Long term – 0.905, Medium term – 0.945, Short term – 0.98

Resistance –

• Long term – 1.174, Medium term – 1.07, Short term – 1.035

Economic release today –

• NIL

Commentary –

• We expect Franc to strengthen against Dollar to as high as 0.9 area.