Currency snapshot (major pairs)

Dollar index trading at 101.75 (+0.36%)

Strength meter (today so far) – Euro -0.24%, Franc -0.21%, Yen -0.64%, GBP -0.51%

Strength meter (since last week) – Euro +0.64%, Franc +0.46%, Yen +0.58%, GBP +0.17%

EUR/USD –

Trading at 1.057

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 –

• Retail sales declined by 0.4 percent in November, up 2.3 percent from a year ago.
• Consumer confidence came at -5.1 in December.
• Services sentiment rose to 12.9
• Business climate improved to 0.79 in December.
• Economic Sentiment improved to 107.9
• Industrial confidence improved to 0.1

Commentary –

• The Euro rose sharply on dollar weakness, however it doesn’t look like a reversal. 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 1.235

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, but positive against the dollar.. We expect the pound to reach parity.

USD/JPY –                      

Trading at 116.1

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 is up on weaker dollar, unlikely to be a reversal.

USD/CHF –        

Trading at 1.012

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 –

• Forex reserve in December declined to 645 billion .

Commentary –

• Franc’s performance improved since yesterday, however still hovering below parity. Franc might decline to 1.08 per dollar. Target extended o 1.14