Currency snapshot (major pairs)

Dollar index trading at 102.37 (-0.03%)

Strength meter (today so far) – Euro +0.01%, Franc +0.05%, Yen +0.49%, GBP -0.13%

Strength meter (since last week) – Euro -0.08%, Franc -0.36%, Yen +0.17%, GBP -0.23%

EUR/USD –

Trading at 1.05

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 –

• Producer price inflation rose by 0.3 percent in November, up 0.1 percent from a year ago.

Commentary –

• The euro rose after finding support around 1.03 area and Fed minutes indicated uncertainties ahead. 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 1.231

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 –

• Markit services PMI rose to 56.2 in December

Commentary –

• The pound is clearly lacking direction cue. We expect the pound to reach parity.

USD/JPY –                      

Trading at 116.5

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 –

• Nikkei services PMI rose to 52.3 in December.

Commentary –

• The yen turned positive against the dollar, the best performer of the week so far.

USD/CHF –        

Trading at 1.021

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 –

• Consumer price inflation declined by 0.1 percent in December, flat for the year.

Commentary –

• Franc is the worst performer of the week. Franc might decline to 1.08 per dollar. Target extended o 1.14