Currency snapshot (major pairs)

Dollar index trading at 100.03 (-0.24%)

Strength meter (today so far) – Euro +0.23%, Franc +0.27%, Yen +0.30%, GBP +0.43%

Strength meter (since last week) – Euro +0.53%, Franc +0.29%, Yen +0.94%, GBP +1.71%

EUR/USD –

Trading at 1.075

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 (broken)

Economic release today –

• NIL

Commentary –

• Euro is gaining from the latest bout of weakness in the dollar. 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 1.259

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – range/buy

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 –

• CBI industrial trade survey orders rose to 5 percent in January from zero in December.

Commentary –

• The pound rose higher against our expectations due to the weakness in the dollar and as the Supreme court ruled against the government. We expect the pound to reach parity.

USD/JPY –                      

Trading at 113.5

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• Corporate service prices numbers for November will be published at 23:50 GMT.

Commentary –

• The yen remains weak compared to euro and the pound. Active call- Sell USD/JPY targeting 110.

USD/CHF –        

Trading at 0.998

Trend meter –

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

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 1 (broken)

Resistance –

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

Economic release today –

• UBS consumption indicator rose to 1.5 in December.
• Zew survey expectations for January rose to 18.5.

Commentary –

• Franc is treading water above parity; it is the worst performer of the week, the pair likely to decline towards 0.98 area in the very near term. Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14