Currency snapshot (major pairs)

Dollar index trading at 102.45 (+0.21%)

Strength meter (today so far) – Euro -0.01%, Franc -0.16%, Yen +0.36%, GBP -0.98%

Strength meter (since last week) – Euro -0.01%, Franc -0.16%, Yen +0.36%, GBP -0.98%

EUR/USD –

Trading at 1.053

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 –

• Sentix investor confidence rose to 18.2 in January.
• Unemployment rate for November came at 9.8 percent.

Commentary –

• The Euro is flat for the day. 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 1.215

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 –

• Halifax house price rose by 1.7 percent in December, up 6.5 percent on three month basis to December from a year ago.

Commentary –

• The pound is the worst performer of the day. We expect the pound to reach parity.

USD/JPY –                      

Trading at 116.4

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 –

• NIL

Commentary –

• The yen is the best performer of the day. Testing of key level at 119 likely to continue.

USD/CHF –        

Trading at 1.018

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 –

• Real retail sales rose by 0.9 percent y/y in November.

Commentary –

• Franc is worse performer than the euro. Likely to hover below parity. Franc might decline to 1.08 per dollar. Target extended o 1.14