Currency snapshot (major pairs)

Dollar index trading at 101.97 (+0.02%)

Strength meter (today so far) – Euro -0.15%, Franc +0.02%, Yen -0.01%, GBP +0.32%

Strength meter (since last week) – Euro +0.52%, Franc +0.26%, Yen -0.69%, GBP +1.25%

EUR/USD –

Trading at 1.064

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 –

• Producer price inflation rose by 0.8 percent in October, down -0.4 percent from a year back.

Commentary –

• The euro gave up some of the gains but still positive on the dollar. 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 1.263

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 –

• Construction PMI came at 52.8 in November.

Commentary –

• The pound is the best performer of the week, up on inflation expectations. We expect the pound to reach parity.

USD/JPY –                      

Trading at 113.9

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 105

Resistance –

• Long term – 119, Medium term – 115, Short term – 115

Economic release today –

• NIL

Commentary –

• The yen is the worst performer of the week as risk aversion subsided.

USD/CHF –        

Trading at 1.009

Trend meter –

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

Support –

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

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• GDP rose by 1.3 percent in the third quarter from a year ago.

Commentary –

• Franc is heading lower on weaker dollar. Franc might decline to 1.08 per dollar.