Currency snapshot (major pairs)

Dollar index trading at 93.55 (-0.30%)

Strength meter (today so far) – Euro +0.45%, Franc +0.36%, Yen +0.62%, GBP +0.02%

Strength meter (since last week) – Euro +0.52%, Franc +0.09%, Yen -0.20%, GBP -0.71%

EUR/USD –

Trading at 1.184

Trend meter –

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

Support          

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

Resistance –

• Long term – 1.22, Medium term – 1.22, Short term – 1.2

Economic release today –

• September trade balance came at €25 billion..

Commentary –

• The euro is the best performer of the week on better economic outlook as the German GDP beats forecast. Active call – Sell targeting 1.14

GBP/USD –

Trading at 1.316

Trend meter –

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

Support –

• Long term – 1.28, Medium term – 1.295, Short term – 1.313 (testing)

Resistance –

• Long term – 1.38 Medium term – 1.36, Short term – 1.36

Economic release today –

• ILO unemployment rate came at 4.3 percent.
• Wage growth 2.2 percent both including and excluding bonus.

Commentary –

• The pound is the worst performer of the day and week as political tensions brew within the Conservative Party as reports surface that 40 MPs are ready to sign no confidence against Prime Minister May. Weaker than expected inflation is also taking a toll on pound. However, it is holding on to support around 1.308 area.

USD/JPY –           

Trading at 112.7

Trend meter –

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

Support –

• Long term – 107, Medium term – 108.4, Short term – 108.4

Resistance –

• Long term – 116, Medium term – 114.2, Short term – 114.2

Economic release today –

• Industrial production declined in September, up 2.6 percent from a year ago.

Commentary –

• The yen is up this week on risk aversion as equities slide. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.986

Trend meter –

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

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 1.00

Economic release today –

• NIL

Commentary –

• Franc is a much worse performer than the euro this week. Active call – Buy pair targeting 1.02

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