Currency snapshot (major pairs)

Dollar index trading at 96.70 (-0.10%)

Strength meter (today so far) – Euro +0.03%, Franc +0.10%, Yen +0.95%, GBP -0.13%

Strength meter (since last week) – Euro -0.17%, Franc -0.26%, Yen +0.95%, GBP +0.05%

EUR/USD –

Trading at 1.126

Trend meter –

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

Support          

• Long term – 1.07, Medium term – 1.09, Short term – 1.10

Resistance –

• Long term – 1.16, Medium term – 1.14, Short term – 1.14

Economic release today –

• Sentix investor confidence grew to 28.4 in June.
• Retail sales grew by 2.5 percent y/y in April.

Commentary –

• The euro remains upbeat and likely to remain so heading into the FOMC meeting next week.

GBP/USD –

Trading at 1.289

Trend meter –

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

Support –

• Long term – 1.16, Medium term – 1.23, Short term – 1.27

Resistance –

• Long term – 1.32, Medium term – 1.305, Short term – 1.305

Economic release today –

• NIL

Commentary –

• The pound is likely to remain range bound heading into the election this week. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 109.3

Trend meter –

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

Support –

• Long term – 107, Medium term – 109, Short term – 110 (broken)

Resistance –

• Long term – 119, Medium term – 115, Short term – 113

Economic release today –

• Labor cash earnings grew by 0.5 percent y/y in April.

Commentary –

• The yen is the best performer of the day and the week on geopolitical tensions.

USD/CHF –        

Trading at 0.964

Trend meter –

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

Support –

• Long term – 0.92, Medium term – 0.95, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 0.98

Economic release today –

• NIL

Commentary –

• Franc is the worst performer of the week so far. It is heading for a test of 0.95 area.