Rupee: Sustaining below the falling trendline at 50.50 we continue to maintain a bullish view on rupee aiming 48.80 levels. The Rupee came under pressure yesterday due to cancellation of old exporter contracts. The movement in Rupee is looking range-bound until there is clarity on the New Government. (USD/INR 50.30) Neutral
Euro: Euro plunged close to 250 pips yesterday after taking the falling trendline resistance. The daily charts are showing a downside momentum while the 4-hourly charts are highly oversold. More Range bound trading could be witnessed above 1.2900. Cautious shorts at higher levels with profit target of 1.2950 can be considered. (Eur/Usd:1.3008). Neutral.
Pound: Cable fell 180 pips from 1.4693 before closing at 1.4624. Cable is struck within a range of 1.44 - 1.47. All the charts are currently showing a downside, thus shorts could be initiated at these levels (1.4610) for 70-80 pips. Alternatively, look for buying opportunities at dips. Stay cautious of the break-out (Gbp/Usd: 1.4570). Neutral
Yen: The Usd/Jpy pair is clearly in the downtrend again after breaking the trendline support at 98.32 and also after meeting weekly resistance at 101.70. The pair is trading close to the 38.2% Retrcament of the recent rise around 96.00 levels. Breaking below this can push the pair further upto 94.30 levels. Bearish (Usd/Jpy: 96.04).
Australian Dollar: Aussie has plunged almost 200 pips since yetserday's open(0.7211). The charts show a downside with support coming at 0.6920 (100 & 55 Daily EMA). The weekly stochastic is also indicating selling opportunities at every rise. Stay short on Aussie targeting 0.6940 as our first target. Bearish (Aud/Usd: 0.7010).
Gold: As discussed earlier, Gold still holds strength and is currently trading around $895 levels and further rally is still expected as long as 892 minor support holds. Medium term slightly bullish. Bullish (Gold: $898.00)
Dollar index : The Dollar Index strengthened after testing the 84.90 levels and charts are now neutrally poised indicating a slight range-bound session. View still reamins that DI is bearish in medium term (DI-85.90). RANGE-BOUND to Bearish.
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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.