Currency snapshot (major pairs)

Dollar index trading at 91.92 (-0.29%)

Strength meter (today so far) – Euro +0.40%, Franc -0.50%, Yen +0.14%, GBP +0.20%

Strength meter (since last week) – Euro +0.41%, Franc -0.10%, Yen -0.04%, GBP +0.21%

EUR/USD –

Trading at 1.206

Trend meter –

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

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 (testing)

Economic release today –

• Markit services PMI rose to 56.6 in December.

Commentary –

• The euro is up this week on a weaker dollar. Active call – Buy targeting 1.25

GBP/USD –

Trading at 1.354

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 –

• Nationwide house price index rose 0.6 percent in December, up 2.6 percent from a year ago.
• Services PMI rose to 54.2 in December.
• November consumer credit at £1.4 billion.
• M4 money supply rose 0.1 percent in November, up 3.7 percent from a year ago.

Commentary –

• The pound is higher this week as dollar weakens.

USD/JPY –           

Trading at 112.8

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 –

• Nikkei manufacturing PMI declined to 54 in December.

Commentary –

• The yen gave up all the gains as equities started the new year with a bang. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.975

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 –

• SVME PMI rose to 65.2 in December.

Commentary –

• Franc is the worst performer this week. Active call – Buy pair targeting 1.02

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