Currency snapshot (major pairs)

Dollar index trading at 97.12 (-0.11%)

Strength meter (today so far) – Euro +0.28%, Franc +0.14%, Yen +0.45%, GBP -0.33%

Strength meter (since last week) – Euro +0.28%, Franc +0.14%, Yen +0.45%, GBP -0.33%

EUR/USD –

Trading at 1.122

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 –

• NIL.

Commentary –

• Despite several attempted breakouts, the euro is still struggling around 1.12 area.

GBP/USD –

Trading at 1.269

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 remains dogged by post-election uncertainties as Conservatives form a minority government. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 109.8

Trend meter –

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

Support –

• Long term – 107, Medium term – 109, Short term – 109

Resistance –

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

Economic release today –

• Machine Tools orders up 24.4 percent y/y in May, according to flash report.

Commentary –

• The yen is the best performer of the day as uncertainties loom large.

USD/CHF –        

Trading at 0.967

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 up in line with the euro. It is heading for a test of 0.95 area.