Currency snapshot (major pairs)

Dollar index trading at 97.04 (+0.04%)

Strength meter (today so far) – Euro -0.02%, Franc +0.02%, Yen -0.16%, GBP +0.27%

Strength meter (since last week) – Euro +0.19%, Franc -0.46%, Yen -0.71%, GBP -0.55%

EUR/USD –

Trading at 1.137

Trend meter –

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

Support          

• Long term – 1.10, Medium term – 1.12, Short term – 1.123

Resistance –

• Long term – 1.22, Medium term – 1.18, Short term – 1.153

Economic release today –

• ECB kept monetary policy unchanged at today’s meeting. The press conference is scheduled at 13:30 GMT.

      Commentary –

• The euro is continuing its tight range against the USD. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095 area.

GBP/USD –

Trading at 1.266

Trend meter –

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

Support –

• Long term – 1.19, Medium term – 1.23, Short term – 1.268

Resistance –

• Long term – 1.35 Medium term – 1.337, Short term – 1.326

Economic release today –

• RICS house price balance came at -11 percent in November, down from -10 percent in October.

Commentary –

• The pound is down as Prime Minister Theresa May forced to cancel parliamentary vote on Brexit deal. But recovered loss as she is won the no-confidence vote and heading to Brussels to renegotiate the deal Active call-  short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.25 and 1.21

USD/JPY –           

Trading at 113.5

Trend meter -

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

Support –

• Long term – 106.2, Medium term – 109.2, Short term – 111

Resistance –

• Long term – 117, Medium term – 114, Short term – 114

Economic release today –

• Tertiary industry index 1.9 percent m/m in November.

Commentary –

• The yen remains trapped in bull/bear fight amid risk aversion and strong dollar. Gave up gains as the risk aversion faded amid a strong USD.

USD/CHF –

Trading at 0.993

Trend meter –

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

Support –

• Long term – 0.92, Medium term – 0.95, Short term – 0.97

Resistance –

• Long term – 1.03, Medium term – 1.00, Short term – 1.00

Economic release today –

• SNB kept monetary policy unchanged at today’s meeting.
• PPI inflation rose 1.4 percent y/y in November.

Commentary –

• Franc is a much worse performer than the euro this week, thanks to risk aversion.