Currency snapshot (major pairs)

Dollar index trading at 92.06 (+0.21%)

Strength meter (today so far) – Euro -0.16%, Franc -0.12%, Yen -0.43%, GBP +0.02%

Strength meter (since last week) – Euro +0.34%, Franc -0.09%, Yen -0.45%, GBP +0.33%

EUR/USD –

Trading at 1.205

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 –

• Flash report showed Eurozone CPI at 1.4 percent y/y in December. Core CPI at 1.1 percent y/y.
• PPI inflation at 0.6 percent in November, up 2.8 percent from a year ago.

Commentary –

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

GBP/USD –

Trading at 1.355

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 –

• BRC shop price index down 0.6 percent in December from a year ago.

Commentary –

• The pound is higher this week as dollar weakens.

USD/JPY –           

Trading at 113.3

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 –

• Markit services PMI declined to 51.1 in December.

Commentary –

• The yen is the worst performer of the week as equities continue to rise. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.976

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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