Currency snapshot (major pairs)

Dollar index trading at 95.36 (-0.07%)

Strength meter (today so far) – Euro -0.12%, Franc -0.06%, Yen +0.78%, GBP +0.04%

Strength meter (since last week) – Euro +0.49%, Franc +0.4%, Yen +1.42%, GBP -1.31%

EUR/USD –

Trading at 1.116

Trend meter –

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

Support

• Long term – 1.08, Medium term – 1.10, Short term – 1.10  

Resistance –

• Long term – 1.2, Medium term – 1.16, Short term – 1.13

Economic release today –

• Euro Zone producer prices declined -4.4% y/y in April. ECB kept policy steady.

Commentary –

• Euro dropped sharply and worst performer today as Draghi kept door open for further stimulus.

GBP/USD –

Trading at 1.442

Trend meter –

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

Support –

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

Resistance –

• Long term – 1.49, Medium term – 1.47, Short term – 1.47

Economic release today –

• UK construction PMI declined to 51.2

Commentary –

• Pound has been hit hard by Guardian poll showing lead for exit camp, however it’s much more stabilized today.

USD/JPY –                      

Trading at 108.6

Trend meter –

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

Support –

• Long term – 98.5, Medium term – 102.8, Short term – 105

Resistance –

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

Economic release today –

• Consumer confidence for May came at 40.9

Commentary –

• Yen is best performer today and this week, boosted by Prime Minister Abe’s tax hike delay and risk aversion. 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 0.989

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 – 1

Economic release today –

• NIL

Commentary –

• Franc is better performer than Euro. We expect Franc to strengthen against Dollar to as high as 0.9 area in the medium term.