Currency snapshot (major pairs)

Dollar index trading at 93.47 (-0.41%)

Strength meter (today so far) – Euro +0.44%, Franc +0.67%, Yen +0.59%, GBP +0.12%

Strength meter (since last week) – Euro +0.38%, Franc +1.56%, Yen -0.17%, GBP +0.43%

EUR/USD –

Trading at 1.141

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 –

• NIL

Commentary –

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

GBP/USD –

Trading at 1.456

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 –

• Manufacturing production rose 0.8% y/y and industrial production rose 1.6% y/y.
• NIESR GDP estimate for three months to May came at 0.5%
• RICS house price balance data will be published at 23:00 GMT.

Commentary –

• Pound is worst performer today, failed to gain on weaker Dollar.

USD/JPY –                      

Trading at 106.7

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 –

• Eco watchers survey outlook improved to 47, while current dropped marginally to 43
• Machinery orders for April will be announced at 23:50 GMT.

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 0.959

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 –

• CPI for May came at -0.4% y/y.

Commentary –

• Franc is best performer this week. We expect Franc to strengthen against Dollar to as high as 0.9 area in the medium term.