Currency snapshot (major pairs)

Dollar index trading at 93.87 (-0.07%)

Strength meter (today so far) – Euro -0.03%, Franc +0.03%, Yen +0.08%, GBP +0.14%

Strength meter (since last week) – Euro +0.03%, Franc +0.09%, Yen -0.12%, GBP -0.10%

EUR/USD –

Trading at 1.177

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 –

• Economic sentiment declined to 29 in December from 30.9 according to ZEW survey.

Commentary –

• The euro is nearly flat awaiting ECB rate decision on Thursday. Active call – Sell targeting 1.14

GBP/USD –

Trading at 1.336

Trend meter –

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

Support –

• Long term – 1.28, Medium term – 1.295, Short term – 1.32

Resistance –

• Long term – 1.38 Medium term – 1.36, Short term – 1.35

Economic release today –

• Retail price index up 0.2 percent in November, up 3.9 percent from a year ago.
• House price index is up 4.5 percent y/y in November.
• PPI output up 3 percent y/y.
• PPI input up 7.3 percent y/y.
• Consumer price index up 3.1 percent y/y.
• Core CPI up 2.7 percent y/y.     

Commentary –

• The pound is almost flat for the week. The focus is on upcoming EU meeting and BoE monetary policy.

USD/JPY –           

Trading at 113.5

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 –

• October Machinery order report will be updated at 23:50 GMT.

Commentary –

• The yen is marginally down this week. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.991

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 flat awaiting the SNB meeting later in the week. Active call – Buy pair targeting 1.02

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