Currency snapshot (major pairs)

Dollar index trading at 97.16 (-0.01%)

Strength meter (today so far) – Euro +0.12%, Franc +0.41%, Yen +0.12%, GBP +0.27%

Strength meter (since last week) – Euro +1.17%, Franc +1.64%, Yen 1.67%, GBP +2.69%

EUR/USD –

Trading at 1.111

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 services PMI declined to 52.8 in October

Commentary –

• The euro is moving higher ahead of NFP report. 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 1.25

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 –

• NIL

Commentary –

• The pound is the best performer of the week as the High court ruled that the parliamentary approval required for triggering Article 50. The pound has reached our target 1.2 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 102.9

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 –

• Markit services PMI rose to 50.5 in October.

Commentary –

• The yen gains ground on risk aversion. 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 –

• SECO consumer climate came at -13 in fourth quarter.

Commentary –

• Franc is a better performer than the euro this 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.