Currency snapshot (major pairs)

Dollar index trading at 94.66 (-0.14%)

Strength meter (today so far) – Euro +0.23%, Franc +0.26%, Yen +0.02%, GBP -0.93%

Strength meter (since last week) – Euro +0.49%, Franc -0.26%, Yen -0.47%, GBP +0.14%

EUR/USD –

Trading at 1.166

Trend meter –

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

Support          

• Long term – 1.14, Medium term – 1.16, Short term – 1.16 (testing)

Resistance –

• Long term – 1.22, Medium term – 1.22, Short term – 1.2

Economic release today –

• Markit manufacturing PMI declines to 58.5 in October.

Commentary –

• The euro is recovering after big selloff last week, it is the best performer among peers. Active call – Sell targeting 1.14

GBP/USD –

Trading at 1.313

Trend meter –

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

Support –

• Long term – 1.28, Medium term – 1.295, Short term – 1.313 (testing)

Resistance –

• Long term – 1.38 Medium term – 1.36, Short term – 1.36

Economic release today –

• Construction PMI improves to 50.8 in October.
• Bank of England (BoE) hikes rates for the first time since the Great Recession of 2008/09.

Commentary –

• The pound declined sharply as dovish statement followed 25 basis points rate hike.

USD/JPY –           

Trading at 114.1

Trend meter –

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

Support –

• Long term – 107, Medium term – 108.4, Short term – 108.4

Resistance –

• Long term – 116, Medium term – 114.2, Short term – 114.2

Economic release today –

• Consumer confidence improves to 44.5 in October.

Commentary –

• The yen is the worst performer of the week as equities continue record run. Active call – Buy yen targeting 101

USD/CHF –

Trading at 1.00

Trend meter –

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

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 0.987 (testing)

Economic release today –

• SVME PMI rose to 62 in October.

Commentary –

• Franc is much worse performer compared to the euro this week and reached our interim target at parity. Active call – Buy pair targeting 1.02

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