Currency snapshot (major pairs)

Dollar index trading at 94.47 (-0.38%)

Strength meter (today so far) – Euro +0.57%, Franc +0.58%, Yen +0.13%, GBP +0.10%

Strength meter (since last week) – Euro +2.07%, Franc +1.78%, Yen +0.69%, GBP +1.86%

EUR/USD –

Trading at 1.139

Trend meter –

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

Support

• Long term – 1.048, Medium term – 1.07, Short term – 1.108

Resistance –

• Long term – 1.15, Medium term – 1.137, Short term – 1.137 (broken)

Economic release today –

• Euro Zone consumer prices dropped by -0.1%, core prices grew 1%.

Commentary –

• Euro is best performer this week, gaining mainly on weaker Dollar. 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 1.437

Trend meter –

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

Support –

• Long term – 1.35, Medium term – 1.38, Short term – 1.406          

Resistance –

• Long term – 1.463, Medium term – 1.45, Short term – 1.43 (broken)

Economic release today –

• UK GDP grew 0.6% in fourth quarter, up 2.1% from a year ago.

Commentary –

• Pound failed to gain much. We expects pound to grow stronger going ahead. Likely to gain towards 1.5 area. However some profit bookings suggested around 1.467 area.

USD/JPY –                      

Trading at 112.2

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 –

• Housing starts in February rose 7.8% from a year ago., construction orders dropped -12.8% y/y.

Commentary –

• Yen is worst performer this week but now in positive against Dollar. 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 0.959

Trend meter –

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

Support –

• Long term – 0.905, Medium term – 0.945, Short term – 0.96

Resistance –

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

Economic release today –

• NIL

Commentary –

• Franc is best performer today. We expect Franc to strengthen against Dollar to as high as 0.9 area.