Currency snapshot (major pairs)

Dollar index trading at 93.84 (-0.57%)

Strength meter (today so far) – Euro +0.22%, Franc +0.47%, Yen +3.06%, GBP +0.1%

Strength meter (since last week) – Euro +1.19%, Franc +1.07%, Yen +3.37%, GBP +1.12%

EUR/USD –

Trading at 1.135

Trend meter –

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

Support

• Long term – 1.08, Medium term – 1.115, Short term – 1.125   

Resistance –

• Long term – 1.17, Medium term – 1.153, Short term – 1.147

Economic release today –

• Euro Zone consumer confidence remained at -9.7, business climate improved to 0.13, services sentiment improved to 11.6, economic sentiment improved to 103.9 and industrial confidence improved to -3.7

Commentary –

• Euro continuing its consolidation around 1.13 area. Our longer term target for Euro to reach as high as 1.20 against Dollar. Active short term call – Sell Euro @1.132 with target at 1.085 and stop loss at 1.148

GBP/USD –

Trading at 1.455

Trend meter –

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

Support –

• Long term – 1.4, Medium term – 1.4, Short term – 1.427 

Resistance –

• Long term – 1.467, Medium term – 1.467, Short term – 1.467

Economic release today –

• Nationwide house prices rose 4.9% y/y in April.
• GFK consumer confidence will be released at 23:00 GMT.

Commentary –

• Pound is testing resistance above 1.46 area.

USD/JPY –                      

Trading at 108.1

Trend meter –

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

Support –

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

Resistance –

• Long term – 121, Medium term – 115, Short term – 111.2

Economic release today –

• Bank of Japan kept policy on hold against popular expectations.
• Vehicle production rose 1.2% y/y in March.
• Housing starts rose 8.4% y/y in March.

Commentary –

• Yen gained sharply more than 3% as BOJ kept policy on hold. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5 First three target reached, new target 90 added.

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 – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.98

Economic release today –

• NIL

Commentary –

• Franc needs to break resistance around 0.95 area for further gains. We expect Franc to strengthen against Dollar to as high as 0.9 area.