Currency snapshot (major pairs)

Dollar index trading at 95.62 (-0.06%)

Strength meter (today so far) – Euro +0.08%, Franc -0.21%, Yen -0.12%, GBP +0.15%

Strength meter (since last week) – Euro +0.08%, Franc -0.21%, Yen -0.12%, GBP +0.15%

EUR/USD:

Trading at 1.114

Trend meter –

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

Support

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

Resistance –

• Long term – 1.16, Medium term – 1.145, Short term – 1.12

Economic release today –

• Sentix investor confidence declined sharply to 1.7 in July.
• Producer price index up 0.6 percent in May, down -3.9 percent from a year back.

Commentary –

• Euro is marginally higher but volatility likely to remain low due to holiday in the U.S.

GBP/USD:

Trading at 1.327

Trend meter –

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

Support –

• Long term – 1.2, Medium term – 1.25, Short term – 1.29 

Resistance –

• Long term – 1.5, Medium term – 1.38, Short term – 1.35

Economic release today –

• Construction PMI declined sharply in June.

Commentary –

• Pound is best performer today but only marginally higher against the dollar.

USD/JPY:                       

Trading at 102.6

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 100

Resistance –

• Long term – 111, Medium term – 107, Short term – 103.5

Economic release today –

• NIL

Commentary –

• Yen is lagging behind as risk aversion is missing. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5. All targets reached, new target 90 added.

USD/CHF :                         

Trading at 0.972

Trend meter –

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

Support –

• Long term – 0.9, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.994

Economic release today –

• NIL

Commentary –

• Franc is worst performer today. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.