Rupee: Rupee tested the 49.60 levels yesterday but strengthened immediately with a strong close, boosted by dollar weakness overseas and fresh bout of selling happening by exporters. Since the currency could not hold to its weakness even for few hours of trade , it shows it will continue to strengthen. Target maintained 48.80 (USD/INR : 49.36). Bullish.
Euro: Euro opened higher today after a sharp correction of 100 pips in yesterdays US Session. Since it has erased all its losses today , the outlook still remains bullish. We should stay neutral in initiating positions since risk -return equation does not justify longs as of now. Look for a major correction to happen . (Eur/Usd:1.3680). Bullish above 1.3400.
Pound: The short idea yesterday gave us 150 pips in cable though the outlook still remains slightly bullish in cable . Look for initiating shorts around 1.5450-1.55 levels . Longs could be initiated only after a major correction. We expect cable to remain bullish for a short term and then a dip below 1.49 is expected.(Gbp/Usd: 1.5290). Short Term Bullish
Yen: Usd/Jpy pair is forming a head and shoulder pattern which is likely to test 96.20 levels . Incase we see the break below 96.00 levels with momentum we could expect a major fall till 92.00 levels. Stay cautious. (Usd/Jpy: 96.40).
Australian Dollar: Aussie charts look quite overbought and 0.7800 could be a level considered for initiating short positions. Longs strategies should be avoided for the time being.(Aud/Usd: 0.7670)
Gold: Gold remained bullish as expected . The short term charts are showing slight correction with $917 as support. Initiate longs within $906-910 levels . Bias of gold remains bullish overall.(Gold- 925.42)
Dollar Index: DI continues to remain weak marking a newer 4 month's low below 82.20 support zone. The bias still remains on the downside heading toward 80 levels in the near term. Neutral to Bearish (DI- 82.20).
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These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy.