Currency snapshot (major pairs)

Dollar index trading at 100.75 (-0.05%)

Strength meter (today so far) – Euro +0.01%, Franc -0.22%, Yen -0.11%, GBP -0.22%

Strength meter (since last week) – Euro +0.50%, Franc -0.14%, Yen +0.01%, GBP +1.00%

EUR/USD –

Trading at 1.064

Trend meter –

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

Support                      

• Long term – 1.01, Medium term – 1.032, Short term – 1.054

Resistance –

• Long term – 1.13, Medium term – 1.11, Short term – 1.09

Economic release today –

• NIL

Commentary –

• Compared to previous two weeks, the euro is much better performer this week. 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 1.245

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 – 1.27, Short term – 1.27

Economic release today –

• NIL

Commentary –

• The pound is the best performer among its peers. We expect the pound to reach parity.

USD/JPY –                      

Trading at 110.8

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 103

Resistance –

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

Economic release today –

• All industry activity index rose by 0.2 percent in September.

Commentary –

• The yen strengthened on the earthquake news that led to the halt in a reactor cooling system in Fukushima Daichi nuclear plant but still hovering above 110 area and likely to extend its decline towards 115.

USD/CHF –        

Trading at 1.01

Trend meter –

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

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 –

• NIL

Commentary –

• Franc is the worst performer this week as the dollar remains above parity. Franc might decline to 1.08 per dollar.