India Forex Advisors / Market Commentary /06_May_2011

By @ibtimes on

Technical Outlook:

EUR/USD: Euro is currently trading positive at 1.4639 levels. Euro is positive on speculation that officials from the European Union will prepare a new aid package for Greece, easing concern over the Eurozone debt crisis. Support is seen around 1.4482 levels (21days 4hrly EMA) while resistance is seen around 1.4940 levels. EUR/INR (65.48): Exporters can cover partially short term exposure at current levels while importers can cover on dips near 64.20 -64.40 levels. EUR/INR is likely to trade in the range of 65.30-64.65 levels today. Short Term: bullish. Medium term: bearish.

GBP/USD: The Sterling is currently trading at 1.6442 levels. Last Friday Services PMI data came out weaker then expected. Inspite of weak data last Friday Sterling was supported by risk sentiment and weaker dollar. Support is seen around 1.6350 levels (100 day daily EMA) and resistance is seen at 1.6540 levels (200 days Weekly EMA). GBP/INR (73.54) Exporters can cover short term exposure near 74.30- 74.40 levels while the importers can look to hedge partially at 72.80 levels and further on dips. GBPINR is likely to trade in the range of 73.40-74.65 levels today. Term: Short term bullish. Medium term: Bearish

AUD/USD: Australian Dollar is currently trading at 1.0743 levels. The Australian dollar and other major currencies rose against the greenback as signs of a slowing U.S. economy to emerge boosting the demand for riskier assets. This morning ANZ Job Advertisements m/m data came out weaker then expected. Support is seen at 1.0660levels (21 days daily EMA) and resistance is seen around 1.0800 levels. Exporters are suggested to book exposure around 1.0780 levels while Importers can cover partially their near term exposure at 1.0550 and further on dips. Short Term: Neutral to slight bearish Medium term: Maintain Bullishness.

USD/JPY: The pair is currently trading at 80.25 levels. The yen along with other major currency appreciated on the back of weaker dollar across board as risk appetite take hold on the back of weak US data in recent days. Resistance is seen near 81.20 levels while support is seen around 80.15 levels. Yen Exporters are suggested to book exposure at .20 and Yen Importers can cover partially near 83 levels. Short term to medium term: Maintain Bullishness for the pair.
Oil: Oil is trading at 100.08 levels. Oil is quiet stable currently as MENA region tensions and weak global outlook seems to be exerting same pressure from both sides . Support is seen at 95.84 levels (200 days daily EMA) while resistance is seen at 100.81 levels (100 days daily EMA). Outlook: Medium term Bullish.

Gold: The Gold is currently trading at 1545.32 levels. Gold is positive as weak U.S. Jobs Data raise the speculation that the Federal Reserve will keep interest rates low to stimulate the U.S. economy. Support is seen at $1522 (21 days daily EMA) while resistance is seen at $1550 levels. Outlook: Medium term Bullish.

Dollar Index: DI is currently trading at 73.74 levels. Dollar is weak across board as risk sentiment loses steam on the back of weak data from US in recent days. Last Friday Non-Farm Employment Change data and Unemployment Rate data came out weaker then expected. Support is seen at 73.20 (Daily Fibonacci) levels and resistance is seen at 74.10 levels. Outlook remains Neutral for Short Term and Medium Term: Bullish (Post July).

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