Currency snapshot (major pairs)

Dollar index trading at 88.91 (-0.30%)

Strength meter (today so far) – Euro +0.40%, Franc +0.21%, Yen +0.11%, GBP +0.12%

Strength meter (since last week) – Euro +0.30%, Franc -0.38%, Yen -0.30%, GBP +0.21%

EUR/USD –

Trading at 1.242

Trend meter –

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

Support          

• Long term – 1.18, Medium term – 1.2, Short term – 1.22

Resistance –

• Long term – 1.25, Medium term – 1.25, Short term – 1.25

Economic release today –

• Eurozone unemployment rate at 8.7 percent in December.
• Consumer price inflation at 1.3 percent y/y in January, core inflation up 1 percent y/y.

Commentary –

• The euro is the best performer of the week. Active call – target  reached1.25

GBP/USD –

Trading at 1.412

Trend meter –

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

Support –

• Long term – 1.35, Medium term – 1.385, Short term – 1.385

Resistance –

• Long term – 1.50 Medium term – 1.485, Short term – 1.435

Economic release today –

• GFK consumer confidence index improved to -9 in December.
• BRC shop price index is down -0.5 percent in December.

Commentary –

• The pound recovered on the back of a weaker dollar. Active call-  Target reached at 1.43

USD/JPY –           

Trading at 108.6

Trend meter –

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

Support –

• Long term – 107, Medium term – 108.4, Short term – 108.4 (testing)

Resistance –

• Long term – 116, Medium term – 112, Short term – 110

Economic release today –

• NIL

Commentary –

• The yen is timid due to lack of risk aversion. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.933

Trend meter –

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

Support –

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

Resistance –

• Long term – 1.03, Medium term – 0.98, Short term – 0.95

Economic release today –

• UBS consumption indicator at 1.69 in December.
• Zew survey expectation declined to 34.5 in December from 52

Commentary –

• Franc is the worst performer of the week so far. Active call – Buy pair targeting 1.02

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