USDINR : The Indian Rupee appreciated on Thursday to close at a 14-month high of 46.08 against the dollar. The likelihood that the central bank could raise interest rates to control inflation prompted exporters to sell dollars on concerns that the currency could appreciate further. Rupee closing below its 21-Day EMA. 14-Day RSI is at 31 levels. For the day, support is seen at 45.99/45.80 whereas resistance is seen at 46.30/46.60.(USDINR - 46.22) Bullish.
EURUSD : The Euro retreated sharply in yesterday's trade after touching an intra-day high of 1.5139 on Thursday. The currency came under pressure after ECB President Trichet's speech. The ECB left its main refinancing rate at a record low of 1% and announced that it will conduct the last of its 12-month refinancing operations this month. The ECB president added that there was an improvement in the economic activity for the rest of the year and recovery will continue at a gradual pace in 2010.For the day, support is seen at 1.5010/1.4910 whereas resistance is seen at 1.5115/1.5175.(EURUSD - 1.5045) Cautious Bullish.
GBPUSD : The Sterling (GBP) rallied in Asia as the Nikkei gained over 3% and the GBP/JPY rallied aggressively. For the rest of the day ,constant selling pressure was seen and Cable finished near 1.6550 support. November PMI Services was weak at 56.6 vs 57 forecast.GBPUSD was forming a wedge pattern in the 4 hourly charts and was likely to take a support at 1.6600 (Trendline as well as 21 EMA support).NOW price have failed to move above the trendline and broke below the rising wedge. The false breakout is confirmed which should trigger significant downside pullback towards 1.6550 and 1.6400 area.(GBPUSD - 1.6535) Bearish.
USDJPY : The Japanese Yen is currently trading at 88.10 levels. Resistance seen around 88.50 levels (50 % Retracement and 21Days EMA in Daily Chart) from where cautious selling can be expected. (USDJPY 88.19) Neutral.
AUDUSD : AudUsd is currently trading at 0.9227 levels. A minor support seen near 0.9200 levels(21Days EMA ) and crucial support at 0.9030 levels (55Days EMA) ,if breaks 0.9020 support and trades below this levels then it can push further down to 0.8800 levels.Initiate shorts near 0.9300 levels keeping stoploss 0.9380. (AUDUSD - 0.9225) Neutral.
Gold : Comex Gold February trades weak this morning at $1204.40, after hitting a new lifetime high $1227.50 yesterday. The recent rally in the precious metals is attributed to strong investment demand and Dollar weakness. We retain our bullish outlook, but we would be forced to review our outlook in case of a move below $1159 on the COMMEX as such a move is likely to temporarily halt the uptrend and could see the price entering a phase of consolidation. For the day rallies to $1233 are likely to find resistance.(Gold - $1203.60) Bullish.
Dollar Index : The Dollar Index gained on Thursday as risk aversion in the financial markets coupled with lukewarm economic data from the US led to higher demand for the low-yielding dollar. Fed chairman Ben Bernanke said that the Fed's forceful actions have prevented a devastating crisis from turning into something possibly even worse. He also pledged to maintain price stability and said that fiscal deficits eventually have to come down. It is worrisome that rising U.S. debt and deficits may continue to undermine the dollar and eventually cause inflation. The dollar could continue to trade with a negative bias as interest rates in the US remain low. For the day, support is seen at 74.47/74.15 whereas resistance is seen at 74.95/75.15.(DI-74.80) Neutral