Currency snapshot (major pairs)

Dollar index trading at 93.93 (-0.08%)

Strength meter (today so far) – Euro -0.15%, Franc +0.22%, Yen -0.20%, GBP +0.85%

Strength meter (since last week) – Euro -0.16%, Franc +0.61%, Yen -1.11%, GBP +0.54%

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 – 1.10, Short term – 1.10  

Resistance –

• Long term – 1.2, Medium term – 1.16, Short term – 1.145

Economic release today –

• Euro Zone GDP rose 1.7% y/y in first quarter.

Commentary –

• Euro is almost flat for the week looking for further cue, after big move last week.

GBP/USD –

Trading at 1.458

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 –

• Halifax house prices rose 9.2% y/y in May.

Commentary –

• Pound gained sharply in Asian hours, due to a big fat finger trade, to trade as high as 1.468 and dropped from there to 1.449 and now trading around 1.458

USD/JPY –                      

Trading at 107.6

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 –

• NIL

Commentary –

• Yen is worst performer this week on rising risk affinity. 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 0.968

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 –

• Swiss FX reserve swelled to $623 billion.

Commentary –

• Franc rose as reserve rose sharply indicating capital flow.. We expect Franc to strengthen against Dollar to as high as 0.9 area in the medium term.