Currency snapshot (major pairs)

Dollar index trading at 103.11 (+0.89%)

Strength meter (today so far) – Euro -0.87%, Franc -0.78%, Yen -0.80%, GBP -0.56%

Strength meter (since last week) – Euro -1.20%, Franc +0.16%, Yen -0.53%, GBP -0.72%

EUR/USD –

Trading at 1.042

Trend meter –

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

Support                      

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

Resistance –

• Long term – 1.11, Medium term – 1.087, Short term – 1.067

Economic release today –

• Manufacturing PMI came at 54.9 for December and services PMI came at 53.1

Commentary –

• The euro declined to the lowest level since 2003. 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 1.247

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 –

• BoE kept interest rates on hold at 0.25 percent.
• Retail sales rose by 5.9 percent y/y in November, up 6.6 percent y/y excluding fuel.

Commentary –

• The Pound declined as the dollar strengthened post Fed hike. We expect the pound to reach parity.

USD/JPY –                      

Trading at 118.1

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 – 121, Medium term – 120, Short term – 119

Economic release today –

• Nikkei manufacturing PMI came at 51.9 for December.

Commentary –

• The yen has turned negative for the year.

USD/CHF –        

Trading at 1.03

Trend meter –

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

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 1

Resistance –

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

Economic release today –

• Swiss National Bank kept interest rates steady at -0.75 percent.

Commentary –

• Franc is testing the last bottom around 1.03 area. Franc might decline to 1.08 per dollar.