Currency snapshot (major pairs)

Dollar index trading at 97.13 (+0.13%)

Strength meter (today so far) – Euro -0.18%, Franc -0.10%, Yen -0.23%, GBP +0.44%

Strength meter (since last week) – Euro -0.69%, Franc -0.99%, Yen -1.27%, GBP -0.39%

EUR/USD –

Trading at 1.132

Trend meter –

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

Support          

• Long term – 1.10, Medium term – 1.12, Short term – 1.123

Resistance –

• Long term – 1.22, Medium term – 1.18, Short term – 1.153

Economic release today –

• Unemployment rate in September came at 8.1 percent.
• CPI inflation rose to 2.2 percent y/y with core CPI at 1.1 percent y/y.

      Commentary –

• The euro started the week on a downbeat note and moving lower as the yield divergence weigh. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095; in short term, the euro might correct towards 1.22 area

GBP/USD –

Trading at 1.277

Trend meter –

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

Support –

• Long term – 1.19, Medium term – 1.23, Short term – 1.268

Resistance –

• Long term – 1.35 Medium term – 1.337, Short term – 1.326

Economic release today –

• NIL

Commentary –

• The pound is also down against the USD. Likely to remain volatile amid the Brexit noise. Active call-  short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.25

USD/JPY –           

Trading at 113.3

Trend meter -

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

Support –

• Long term – 106.2, Medium term – 109.2, Short term – 111

Resistance –

• Long term – 117, Medium term – 114, Short term – 114

Economic release today –

• Bank of Japan (BoJ) kept monetary policy unchanged at -0.1 percent.
• Housing starts down by 1.5 percent y/y in September.
• Consumer confidence declined to 43 in October.

Commentary –

• The yen remains trapped in bull/bear fight amid risk aversion and a strong dollar. Gave up all gain as risk aversion faded and strong dollar weighed.

USD/CHF –

Trading at 1.00

Trend meter –

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

Support –

• Long term – 0.92, Medium term – 0.95, Short term – 0.97

Resistance –

• Long term – 1.03, Medium term – 1.00, Short term – 1.00 (testing)

Economic release today –

• Zew survey expectations declined to -39.1 in October.

Commentary –

• Franc is a much worse performer than the euro this week amid risk aversion bids.