Rupee: Rupee is holding strong near the support of 49.20. We continue to focus on our earlier target of 48.80 in the near term. A lucid election declaration on May 16th can aid the rupee to gain further or else testing 50 levels can be a possibilty. (USD/INR : 49.25). Short term Bullish.
Euro: Euro rose to 1.3470 despite the 25 bps cut yesterday but lifted by hopes from Trichet on signs of economic stabalization after taking the important cluster support around 1.3250 . The daily and 4-hourly charts are turning mid-way to indicate further upside in Euro. Decisive break of 1.3450 can push Euro to 1.3680. Look for buying opportunities at dips.(Eur/Usd:1.3389). Bullish above 1.3190.
Pound: Cable plunged almost 250 pips to 1.4942 (38.2% of the recent rally) even though BoE kept rates unchanged at 0.5%. Support remains around 1.49 levels, holding above which can bring a pull back to 1.5150 and then to 1.5350 levels. Look for buying cable around those levels for 100 pips. Alternatively, sell around 1.5350 levels for 100-150 pips as the daily charts are highly overbought. (Gbp/Usd: 1.5020). Short Term Bullish
Yen: The Usd/Jpy pair moved higher upto 99.75 yesterday. The charts have become neutral. Support remains at 98.00 where going long on the pair could be considered for 80-100 pips. Decisive break above 100 can push the pair to 101.70 resistance. (Usd/Jpy: 99.25).
Australian Dollar: Aussie surged 160 pips to 0.7615 levels yesterday. All the major charts have flattened in the overbought region. Sustaining above 0.7550 can push Aussie to 0.7798 levels (100 & 200 Weekly EMA). Selling around 0.7760 for 70-80 pips could be considered. (Aud/Usd: 0.7542).
Gold: Gold surged to $925 ($16) yesterday to take the 61.8% Retracement Resistance. The view for gold still remains bullish as far as $895 support is strong. The 4-hourly charts are getting oversold, thus buying around $902 levels could be considered. Near term bias for Gold - Range-bound . (Gold: $913.60)
Dollar index: The Dollar Index has weakened as it broke the 84 support once again. It is now heading towards 83.25 as the next target-support. Bearish. (84.14). 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.