Currency snapshot (major pairs)

Dollar index trading at 97.36 (-0.01%)

Strength meter (today so far) – Euro -0.22%, Franc -0.07%, Yen +0.22%, GBP +1.44%

Strength meter (since last week) – Euro +0.78%, Franc +1.26%, Yen 1.42%, GBP +2.57%

EUR/USD –

Trading at 1.107

Trend meter –

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

Support                      

• Long term – 1.06, Medium term – 1.08, Short term – 1.08

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.132

Economic release today –

• Unemployment rate rose by 10 percent in September.

Commentary –

• The euro is charged up on weaker dollar but advance has somewhat halted. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01. stop loss revised to 1.13

GBP/USD –

Trading at 1.249

Trend meter –

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

Support –

• Long term – 1.16, Medium term – 1.2, Short term – 1.2

Resistance –

• Long term – 1.32, Medium term – 1.25, Short term – 1.24

Economic release today –

• BoE services PMI rose to 54.5 in October.

Commentary –

• The pound’s performance improved as court ruled that the parliamentary approval required for triggering Article 50. The pound has reached our target 1.2 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 103.1

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 98

Resistance –

• Long term – 111, Medium term – 107, Short term – 107

Economic release today –

• NIL

Commentary –

• The yen rose further on risk aversion. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5. All targets reached, new target 90 added. Yen may retrace to 111 per dollar if BOJ intervenes.

USD/CHF –        

Trading at 0.973

Trend meter –

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

Support –

• Long term – 0.9, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.995

Economic release today –

• SECO consumer climate came at -13 in fourth quarter.

Commentary –

• Franc is a better performer than the euro this week. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term. However, this call is under threat currently. We could soon revise the call.