Currency snapshot (major pairs)

Dollar index trading at 101.16 (+0.17%)

Strength meter (today so far) – Euro +0.05%, Franc -0.18%, Yen -0.45%, GBP -0.43%

Strength meter (since last week) – Euro +0.60%, Franc -0.06%, Yen +0.15%, GBP -0.30%

EUR/USD –

Trading at 1.065

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 –

• Consumer price inflation came at 0.6 percent for November. Core CPI is up 0.8 percent.

Commentary –

• The euro stands as the best performer of the 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 1.243

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 worst performer of the week. We expect the pound to reach parity.

USD/JPY –                      

Trading at 113

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 105

Resistance –

• Long term – 119, Medium term – 115, Short term – 115

Economic release today –

• Vehicle production declined by 3.8 percent in October from a year ago.
• Housing starts rose by 13.8 percent in October from a year ago.
• Construction orders rose by 15.2 percent.

Commentary –

• The yen is the worst performer of the day as risk aversion subsides.

USD/CHF –        

Trading at 1.013

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 – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• UBS consumption indicator rose to 1.49
• KOF leading indicator marginally declined to 102.2

Commentary –

• Franc is much worse performer than the euro. Franc might decline to 1.08 per dollar.