Currency snapshot (major pairs)

Dollar index trading at 97.43 (-0.35%)

Strength meter (today so far) – Euro +0.39%, Franc +0.46%, Yen +0.76%, GBP +0.68%

Strength meter (since last week) – Euro +1.05%, Franc +1.58%, Yen 1.34%, GBP +1.16%

EUR/USD –

Trading at 1.11

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 –

• Markit manufacturing PMI rose to 53.5 in October.

Commentary –

• The euro gained further as the dollar weakens. 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 1.232

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 construction PMI came at 52.6 in October.

Commentary –

• The pound’s performance improved as the dollar weakened. The pound has reached our target 1.2 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 103.3

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 –

• Consumer confidence declined to 42.3 in October from 43 prior.

Commentary –

• The yen is the best performer of the day. 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 0.971

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 the best performer of the week. 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.