Currency snapshot (major pairs)

Dollar index trading at 97.17 (-0.26%)

Strength meter (today so far) – Euro +0.27%, Franc +0.49%, Yen +0.37%, GBP +0.26%

Strength meter (since last week) – Euro +0.27%, Franc +0.49%, Yen +0.37%, GBP +0.26%

EUR/USD –

Trading at 1.134

Trend meter –

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

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 –

• October trade balance came at €12 billion.
• CPI inflation declined to 1.9 percent y/y in November. Core CPI at 1 percent. Core CPI declined by 0.3 percent m/m in November.

      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 1.261

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 –

• Halifax house price index down 1.5 percent in December compared to November. Up 0.7 percent from a year ago.

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 112.9

Trend meter -

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

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 –

• NIL

Commentary –

• The yen remains trapped in bull/bear fight amid risk aversion and strong dollar. Rising this week amid rising risk aversion in the market.

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 –

• NIL

Commentary –

• Franc is the best performer of the day as Brussels extended access to Swiss exchange until June 2019.