Currency snapshot (major pairs)

Dollar index trading at 102.32 (+0.24%)

Strength meter (today so far) – Euro -0.64%, Franc -0.58%, Yen -0.27%, GBP -0.24%

Strength meter (since last week) – Euro -0.12%, Franc -0.34%, Yen +0.53%, GBP -1.09%

EUR/USD –

Trading at 1.052

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 –

• NIL

Commentary –

• The euro sharply declined today, worst performer of the day, which pushed the currency to become red against the dollar this week so far. 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 1.213

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 –

• Industrial production rose by 2 percent y/y in November and manufacturing production rose by 1.2 percent.
• Goods deficit in November ballooned to a record 12.16 billion pound.

Commentary –

• The pound remains the worst performer of the week as the market fears hard Brexit. Larger deficit renewed selloffs today. We expect the pound to reach parity.

USD/JPY –                      

Trading at 116.3

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 –

• Coincident index improved to 115.1 and leading economic index improved to 102.7

Commentary –

• The yen is the best performer of the week despite losing to the dollar today.

USD/CHF –        

Trading at 1.02

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 down in line with the euro. Franc might decline to 1.08 per dollar. Target extended o 1.14