Currency snapshot (major pairs)

Dollar index trading at 101.62 (+0.19%)

Strength meter (today so far) – Euro -0.27%, Franc -0.23%, Yen +0.34%, GBP -0.87%

Strength meter (since last week) – Euro -0.27%, Franc -0.23%, Yen +0.34%, GBP -0.87%

EUR/USD –

Trading at 1.059

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 –

• Trade balance for November came at €22.7 billion.

Commentary –

• Euro is struggling to gain stronger footing despite a strong dollar. The focus is on ECB on Thursday. 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 1.206

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 –

• Right move House Price index is up 0.4 percent in December, up 3.2 percent from a year ago.
• BoE’s Carney is scheduled to speak at 18:30 GMT.

Commentary –

• The pound remains the worst performer of the day as the fear of hard Brexit weighs. We expect the pound to reach parity.

USD/JPY –                      

Trading at 114.2

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 –

• Tertiary industry index is up 0.2 percent in November.
• Flash reading showed, Machine tools orders up 4.4 percent in December.        

Commentary –

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

USD/CHF –        

Trading at 1.012

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 to 1.14