Currency snapshot (major pairs)

Dollar index trading at 100.91 (-0.15%)

Strength meter (today so far) – Euro +0.19%, Franc +0.18%, Yen +0.25%, GBP -0.09%

Strength meter (since last week) – Euro +0.43%, Franc +0.16%, Yen -0.53%, GBP +0.53%

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 –

• Industrial production declined 0.1 percent in October, up 0.6 percent from a year ago.

Commentary –

• The euro is higher heading into FOMC. 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 1.265

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 –

• Unemployment rate came at 4.8 percent.
• Earnings grew by 2.5 percent including bonus and 2.6 percent excluding it.
• BoE governor Carney is scheduled to speak at 12:15 GMT.

Commentary –

• The Pound is the worst performer of the day. We expect the pound to reach parity.

USD/JPY –                      

Trading at 114.9

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 –

• Industrial production came at -1.4 percent y/y in October.

Commentary –

• The yen retraced below 115 per dollar ahead of FOMC.

USD/CHF –                        

Trading at 1.009

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 –

• Producer price inflation grew 0.1 percent in November, down 0.6 percent from a year ago.

Commentary –

• Franc is up in line with the euro. Franc might decline to 1.08 per dollar.