Currency snapshot (major pairs)

Dollar index trading at 99.7 (+0.42%)

Strength meter (today so far) – Euro -0.73%, Franc -1.05%, Yen -1.18%, GBP -0.43%

Strength meter (since last week) – Euro -0.73%, Franc -1.05%, Yen -1.18%, GBP -0.43%

EUR/USD –

Trading at 1.076

Trend meter –

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

Support                      

• Long term – 1.01, Medium term – 1.032, Short term – 1.054

Resistance –

• Long term – 1.13, Medium term – 1.11, Short term – 1.09

Economic release today –

• Industrial production declined 0.8 percent in September, up 1.2 percent from a year ago.

Commentary –

• The euro has broken below a major support around 1.08 area. 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 1.252

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 – 1.27, Short term – 1.27

Economic release today –

• NIL

Commentary –

• The pound is the best performer among majors but still down against the dollar. The pound has reached our target 1.2 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 107.8

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 103

Resistance –

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

Economic release today –

• Industrial production rose 0.6 percent in September, up 1.5 percent from a year ago.

Commentary –

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

USD/CHF –        

Trading at 0.997

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 –

• Producer and import prices rose by 0.1 percent in October, down 0.2 percent from a year ago.

Commentary –

• Franc is once again back testing the 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.