Currency snapshot (major pairs)

Dollar index trading at 102.97 (-0.08%)

Strength meter (today so far) – Euro +0.15%, Franc +0.08%, Yen +0.15%, GBP -0.22%

Strength meter (since last week) – Euro +0.04%, Franc +0.11%, Yen +0.21%, GBP -1.85%

EUR/USD –

Trading at 1.045

Trend meter –

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

Support                      

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

Resistance –

• Long term – 1.11, Medium term – 1.087, Short term – 1.067

Economic release today –

• NIL

Commentary –

• The euro treading water in absence of a clear lack of direction. 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 1.226

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 –

• GDP rose by 0.6 percent in the third quarter, up 2.2 percent from a year ago.
• Total business investments rose by 0.4 percent, down 2.2 percent from a year back.
• Third quarter current account deficit came at £25.49 billion.

Commentary –

• The selloffs in pound continue and likely to extend towards $1.21 in the short run. By far the worst performer this week. We expect the pound to reach parity.

USD/JPY –                      

Trading at 117.3

Trend meter –

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

Support –

• Long term – 98, Medium term – 105, Short term – 112

Resistance –

• Long term – 121, Medium term – 120, Short term – 119

Economic release today –

• NIL

Commentary –

• The yen’s performance improved as the dollar lost some of its sheen.

USD/CHF –        

Trading at 1.026

Trend meter –

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

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 1

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• KOF leading indicator came at 102.2 in December.

Commentary –

• Franc is still testing the last bottom around 1.03 area, flat against the dollar this week. Franc might decline to 1.08 per dollar. Target extended o 1.14