Currency snapshot (major pairs)

Dollar index trading at 98.61 (-0.07%)

Strength meter (today so far) – Euro +0.14%, Franc -0.06%, Yen -0.34%, GBP +0.13%

Strength meter (since last week) – Euro +0.14%, Franc -0.06%, Yen -0.34%, GBP +0.13%

EUR/USD –

Trading at 1.089

Trend meter –

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

Support                      

• Long term – 1.06, Medium term – 1.08, Short term – 1.08

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.132

Economic release today –

• Flash consumer confidence will be released at 14:00 GMT.

Commentary –

• The euro is marginally higher after devastation last week. 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 1.223

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 – 1.25, Short term – 1.24

Economic release today –

• Public sector net borrowing for September came at £10.12 billion, higher than expected.

Commentary –

• The pound is marginally higher today. The pound has reached our target 1.2 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 104

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 98

Resistance –

• Long term – 111, Medium term – 107, Short term – 107

Economic release today –

• NIL

Commentary –

• The yen is the worst performer today. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5. All targets reached, new target 90 added. Yen may retrace to 111 per dollar if BOJ intervenes.

USD/CHF –        

Trading at 0.993

Trend meter –

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

Support –

• Long term – 0.9, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.995

Economic release today –

• NIL

Commentary –

• Franc is likely to move in line with the euro. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term. However, this call is under threat currently. We could soon revise the call.