Rupee: Rupee tested the 50-mark in the early trade today to touch the crucial trendline resistance at the back of strength in US dollar. The jitters in the markets are due to the pre-election effect giving the exporters fresh opportunities to sell. (USD/INR : 49.74). Short Term Bullish.
Euro: Euro plunged close to 200 pips since yesterday's high of 1.3721 erasing most of its gains. The outlook continues to remains bullish above 1.34. The 4-hourly is oversold and buying at dips around 1.3490 - 1.3525 levels could be considered . (Eur/Usd:1.3568). Bullish above 1.3400.
Pound: Pound plunged after BoE's inflation report yesterday to touch the lows of 1.5085 from 1.5332. The 4-hourly charts are getting oversold with initial support remaining at 1.5067 (55 4-hourly EMA). Look for initiating longs around 1.5060-1.51 levels for 80-100 pips. We expect cable to remain bullish for a short term.(Gbp/Usd: 1.5140). Short Term Bullish
Yen: Usd/Jpy pair has broken the 96.00 support and is heading lower as expected yesterday. Although the charts are getting oversold and some upside could be witnessed, sustained trading below 96.00 levels may bring a test of 93.50 levels. Stay cautious. (Usd/Jpy: 95.40).
Australian Dollar: Aussie as expected corrected almost 200 pips to 0.7500 levels (55 4-hourly EMA) yesterday with the hourly and 4-hourly charts now getting oversold. Breaking of 0.7500 can push Aussie to 0.7400 levels (100 4-hourly) which could be considered as a good opportunity to initiate longs. (Aud/Usd: 0.7532)
Gold: Gold remained bullish as expected. The short term charts are showing slight correction with $910 as support. Initiate longs within $906-910 levels. Bias of gold remains bullish overall.(Gold- 925.42)
Dollar Index: DI retraced to 83 levels after the release of bad US retail sales data marginally taking the 82.20 support. Overall the bias still remains on the downside for DI , thus selling dollars at every tick can be considered. Neutral to Bearish (DI- 82.85).
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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.