Currency snapshot (major pairs)

Dollar index trading at 101.01 (-0.71%)

Strength meter (today so far) – Euro +0.47%, Franc +0.55%, Yen +0.66%, GBP +0.55%

Strength meter (since last week) – Euro +1.10%, Franc +0.89%, Yen +2.27%, GBP +0.09%

EUR/USD –

Trading at 1.065

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 –

• Industrial production rose 3.2 percent y/y in November.

Commentary –

• The euro is one again trying to build up on the weakness of 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 1.228

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 but finally turned positive against the dollar today. We expect the pound to reach parity.

USD/JPY –                      

Trading at 114.3

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• Eco Watchers’ survey current index rose to 51.4 and outlook index rose to 50.9

Commentary –

• The yen is the best performer of the week as risk aversion sets in with regard to Trump’s policy uncertainties. Active call- Sell USD/JPY targeting 110.

USD/CHF –        

Trading at 1.007

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