Rupee: Rupee broke the 47 level in the early trade today poising a 5-month high. Next support for Rupee is traced around 46.60 levels. The strength in the local unit is due to dollar weakness across the board and Dollar Index declining continuosly. Importers can start booking near term contracts below 47.00 while exporters should look for retracements upto 48 to sell. (USD/INR : 47.10). Short term Bullish

Euro: Euro strengthened 200 pips yesterday from 1.3727 lows. Currently trading around 1.3910 it is taking the channel trendline resistance. The stochastics are overbought and retracement upto 1.3750 could be seen where longs could be initiated. On the upside stong break of the Channel Resistance (1.3950) can push Euro higher to 1.4170 (50% of the fall from 1.6038 to 1.2329). (Eur/Usd:1.3909). Short Term Bullish.

Pound: Cable's saw a kneejerk weakness as it shed 300 pips to touch 1.5512 (21 daily EMA) after the news of S&P downgrading the UK Economy in the UK session. The entire loss was quickly recovered after better than expected Retail Sales and Net Borrowings to surge to 1.59 levels. The daily & 4-Hourly charts are overbought with resistance around 1.6030. Partially book profits on the long positions suggested yesterday at 1.5550 & 1.5650. Stay cautious on shorts before 1.61. (Gbp/Usd: 1.5845).Short term Bullish

Yen: The Usd/Jpy pair further weakened to test 93.85 in the morning trade today. The daily and weekly charts continue to indicate selling pressure in the pair. Resistance comes around 95.60 and then at 96.80 where shorts in the pair could be considered. Overall outlook remains bearish and sustaining below 94 can lead the pair to 92.50. (Usd/Jpy: 94.12).

Australian Dollar: Aussie plunged to 0.7667 low, however, recovered to close stronger at 0.7782 as expected. It continues to trade below the 0.7800 weekly resistance. The daily and the 4-hourly charts are overbought. Break above 0.7790 resistance can push Aussie towards 0.7935 (50% Retarcement of the fall). Initiate longs at dips around 0.7520 levels. (Aud/Usd: 0.7781)

Gold: Gold was lifted to $955 due to the weakness in dollar. We maintain our view for going long at dips as the overall bias for gold is bullish. Bullish(Gold- 951.62).

Dollar Index: DX fell further for the 4th consecutive day to test 80.38 this morning. Our target of 80.20 (as mentioned in our charts) is nearing. The stochastic continues to be flat in the oversold region. (DI- 80.45) ) Bearish.

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DISCLAIMER

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.