Currency snapshot (major pairs)

Dollar index trading at 101.42 (+0.28%)

Strength meter (today so far) – Euro -0.19%, Franc -0.19%, Yen -0.12%, GBP -0.47%

Strength meter (since last week) – Euro +0.23%, Franc +0.22%, Yen -0.37%, GBP +0.97%

EUR/USD –

Trading at 1.064

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 –

• Euro is under pressure, despite a lacking strength in the dollar, as ECB President Draghi shrugged off inflationary fear. 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 – range

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 –

• Retail sales declined by 1.9 percent in December, up 4.9 percent from a year ago.

Commentary –

• The pound remains the best performer of the week despite facing selloffs. We expect the pound to reach parity.

USD/JPY –                      

Trading at 115

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 –

• NIL

Commentary –

• The yen declined sharply as BoJ expressed displeasures with regard to yen’s strength. It is down from the best performer to worst performer of the week. Active call- Sell USD/JPY targeting 110.

USD/CHF –        

Trading at 1.008

Trend meter –

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

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 hovering around parity, the pair likely to decline towards 0.98 area in the very near term. Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14