Currency snapshot (major pairs)

Dollar index trading at 97 (-0.20%)

Strength meter (today so far) – Euro +0.15%, Franc +0.04%, Yen +0.00%, GBP +0.45%

Strength meter (since last week) – Euro +0.69%, Franc +0.52%, Yen +0.63%, GBP +0.15%

EUR/USD –

Trading at 1.137

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 –

• Zew survey economic sentiment improves in December marginally to -21 from -22 in November.

      Commentary –

• The euro is continuing its tight range against the USD. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095 area.

GBP/USD –

Trading at 1.262

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 –

• ILO unemployment rate came at 4.1 percent in October. Wages grew by 3.3 percent both including and excluding bonus.

Commentary –

• The pound is the worst performer of the week as Prime Minister Theresa May forced to cancel the parliamentary vote on Brexit deal Active call-  short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.25 and 1.21

USD/JPY –           

Trading at 113.2

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 –

• Machine tools orders down 16.7 percent y/y in November.
• October Machinery orders report will be published at 23:30 GMT.

Commentary –

• The yen remains trapped in bull/bear fight amid risk aversion and the strong dollar. Gave up gains as the risk aversion faded amid a strong USD.

USD/CHF –

Trading at 0.989

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

Economic release today –

• Unemployment rate came at 2.4 percent in November.

Commentary –

• Franc is down in line with the Euro.