Currency snapshot (major pairs)

Dollar index trading at 100.62 (+0.18%)

Strength meter (today so far) – Euro -0.30%, Franc -0.15%, Yen +0.11%, GBP -0.09%

Strength meter (since last week) – Euro -1.14%, Franc -0.75%, Yen +0.13%, GBP +0.05%

EUR/USD –

Trading at 1.065

Trend meter –

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

Support                      

• Long term – 1.01, Medium term – 1.032, Short term – 1.032

Resistance –

• Long term – 1.11, Medium term – 1.084, Short term – 1.084

Economic release today –

• NIL

Commentary –

• The euro is the worst performer of the week so far over concerns with French election.

GBP/USD –

Trading at 1.248

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – range/buy

Support –

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

Resistance –

• Long term – 1.32, Medium term – 1.27, Short term – 1.27

Economic release today –

• MPC member Cunliffe is scheduled to speak at 13:00 GMT.

Commentary –

• The pound is focused on the upcoming Brexit debate this week. It has recovered from its big loss yesterday and is positive for the week. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 112.2

Trend meter –

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

Support –

• Long term – 98, Medium term – 105, Short term – 112

Resistance –

• Long term – 121, Medium term – 120, Short term – 119

Economic release today –

• Eco-watchers survey current declined 49.8 and outlook declined to 49.4 in January.

Commentary –

• The yen remains the best performer among majors on risk aversion. Active call- Sell USD/JPY targeting 110.

USD/CHF –        

Trading at 0.999

Trend meter –

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

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 0.98

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• NIL

Commentary –

• Franc is a much better performer than the euro this week. Franc is likely to weaken against the dollar in the longer run.  Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14