Currency snapshot (major pairs)

Dollar index trading at 95.97 (-0.03%)

Strength meter (today so far) – Euro -0.04%, Franc +0.32%, Yen +0.55%, GBP +0.06%

Strength meter (since last week) – Euro -0.03%, Franc +0.28%, Yen +0.78%, GBP -0.06%

EUR/USD –

Trading at 1.115

Trend meter –

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

Support                      

• Long term – 1.06, Medium term – 1.08, Short term – 1.09            

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.132

Economic release today –

• NIL

Commentary –

• The euro remains flat for the week as the focus is on FOMC. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01. However, in the short run, Euro might ride higher.

GBP/USD –

Trading at 1.299

Trend meter –

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

Support –

• Long term – 1.2, Medium term – 1.27, Short term – 1.29

Resistance –

• Long term – 1.39, Medium term – 1.35, Short term – 1.34

Economic release today –

• Public sector net borrowing came at £10.05 billion.

Commentary –

• The pound recovered some ground and now testing resistance around 1.3 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 101.1

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• The BoJ introduced QQE with yield curve control, after dovish first impression yen turned out to be stronger. BoJ will use rates to control short term rates and asset purchases to control long term rates.

Commentary –

• The yen strengthened despite the BoJ introducing a new tool, which yield curve control.  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 0.976

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 a better performer than the euro this week so far. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.