On the first trading day of 2011, the Dollar maintained a stronger ground against the Euro, Aussie, Swiss Franc and Cable, on expectations that the U.S. economic recovery was gaining momentum. Euro has been trading lower against the Dollar. The Yen was trading in a 30 pips range and traded at 81.24 levels. Most Asian currencies were stronger than the dollar. Crude was again stronger today trading at 91.70. Many global centre's such as Australia, New Zealand and Japan are on holiday for the New Years Day Bank Holiday, thus expecting liquidity to be thin.
EUR/USD: The Euro is currently trading at 1.3287 levels and it had touched a low of 1.3275 levels and high of 1.3362 levels. Looking ahead today, Final Manufacturing PMI expected at 56.9 vs. 56.8 previous. Immediate support comes at 1.3244 levels (21 daily EMA) followed by 1.3055 levels (21days Daily lower Bollinger) and next 1.2970, while resistance comes at 1.3335 levels (200 Daily EMA) and next 1.3370 levels (55 Daily EMA). EURINR (59.45) exporters hold for covers and importers cover for Jan at around 59.20 or below levels. EUR/INR is likely to trade in the range of 59.30 - 59.60 today. Short term and Medium term: Bearish.
GBP/USD: The Pound is currently trading around 21 daily EMA levels of 1.5541 and it had touched low of 1.5530 levels. Immediate resistance comes near 1.5620 levels (200 Daily EMA) followed by 1.5670 (55 Daily EMA) while support comes at 1.5280. GBPINR (69.50) Exporters hold for covers and importers cover for Jan at 69.30 levels or below. GBPINR is likely to trade in the range of 69.35 - 69.65 levels today. Short Term and Medium Term: Neutral to slight Bearish.
USD/JPY: USD/JPY is currently trading at 81.28 levels. Overall it had traded with a low of 80.91 and a high of 81.34. Immediate strong resistance is at 81.65 levels (21 H4 EMA) followed by 82.35 (55 H4 EMA). Yen Exporters are suggested to book Jan and Feb month's exposure around 81 levels and Yen Importers had already been advised to cover their exposures near 84 levels. Medium Term: Maintain Bearishness for the pair Target 80 and below.
AUD/USD: The Aussie is currently trading at 1.0195 levels. Overall it had made a low of 1.0178 and a high of 1.0224. Immediate support comes at 1.0027 levels (21 Daily EMA) followed by 0.9902 levels (55 Daily EMA) while immediate resistance is at 1.0256 levels (High of 31.12.2010). Exporters are suggested to book Jan and Feb month's exposure at around 1.0200 levels, and Importers can cover their exposure on dips. Medium term: Bullish.
Gold: Gold is currently trading at 1417.20 levels. Overall the yellow metal had made a low of 1413.40 and a high of 1421.10. Immediate resistance is at $1,431 levels while immediate support comes near $1400 followed by $1370 levels. Buying on dips is recommended. Medium term: Maintain bullishness.
DOLLAR INDEX: Dollar Index is currently trading at 79.33 levels. Looking ahead today, ISM Manufacturing PMI expected at 57.1 vs. 56.6 previous and Construction Spending m/m forecasted at 0.2% vs. 0.7% previous. There is a support at 78.83 levels followed by 79.20 levels and resistance is at 80.52 and next 81.50 levels. Holding above 80.50 would be quite bullish.
These views/ forecasts/ suggestions, though proffered 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. Those acting in the market on the basis of these are themselves responsible for any profits or losses that might occur, without recourse to us. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.