Currency snapshot (major pairs)

Dollar index trading at 103.4 (+0.26%)

Strength meter (today so far) – Euro -0.20%, Franc -0.24%, Yen -0.77%, GBP -0.34%

Strength meter (since last week) – Euro -0.65%, Franc -0.38%, Yen -0.34%, GBP -1.20%

EUR/USD –

Trading at 1.038

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 –

• Current account balance came at €28.4 billion.

Commentary –

• The euro slides to the lowest level since November 2002. 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 1.234

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 –

• CBI distributive trade survey rose to 35 percent in December.

Commentary –

• The selloffs in pound likely to extend towards $1.21 in the short run. We expect the pound to reach parity.

USD/JPY –                      

Trading at 117.9

Trend meter –

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

Support –

• Long term – 98, Medium term – 105, Short term – 112

Resistance –

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

Economic release today –

• BoJ kept interest rates on hold, hints readiness to act if necessary. Revises outlook upwards.

Commentary –

• The yen is the worst performer of the day as BoJ keeps open the easing tab.

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 –

• NIL

Commentary –

• Franc is still testing the last bottom around 1.03 area. Franc might decline to 1.08 per dollar. Target extended o 1.14