Currency snapshot (major pairs)

Dollar index trading at 96.33 (-0.18%)

Strength meter (today so far) – Euro +0.24%, Franc +0.50%, Yen +0.13%, GBP -0.09%

Strength meter (since last week) – Euro +0.35%, Franc -0.12%, Yen -4.02%, GBP +2.47%

EUR/USD –

Trading at 1.109

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 –

• Eurozone industrial production declined in May by 1.2 percent but up 0.5 percent from a year back.

Commentary –

• Euro is treading waters around 1.11. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.326

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• RICS house price balance will be released at 23:00 GMT.

Commentary –

• Pound is best performer today and this week Theresa May became Britain’s next Prime Minister. We expect the pound to reach parity.

USD/JPY –                      

Trading at 104.5

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 –

• Industrial production declined -2.6 percent in May, down -0.4 percent from a year back.

Commentary –

• Yen is worst performer of the week on speculation that BoJ will intervene in the market. 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. Yen may retrace to 111 per dollar if BOJ intervenes.

USD/CHF –        

Trading at 0.984

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 best performer today as Franc on safe haven flows from the yen. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.