Currency snapshot (major pairs)

Dollar index trading at 98.05 (-0.35%)

Strength meter (today so far) – Euro +0.48%, Franc +0.77%, Yen -0.01%, GBP -0.07%

Strength meter (since last week) – Euro +0.37%, Franc +0.47%, Yen -0.18%, GBP +0.42%

EUR/USD –

Trading at 1.102

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 –

• NIL

Commentary –

• The euro’s performance improved as the dollar declined on the possibility of a Trump win. 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 1.222

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 –

• Markit manufacturing PMI came at 54.3 in October.

Commentary –

• The pound performed better after it came out that Market Carney will remain as the President of BoE until the second quarter of 2019. The pound has reached our target 1.2 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 104.8

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 –

• BoJ kept interest rate on hold at -0.1 percent.

Commentary –

• The yen is the worst performer of the week. 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 0.982

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 –

• Retail sales came at -2.3 percent y/y in October.

Commentary –

• Franc is performing strongly after finding support at parity. 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.