The Dollar was trading in a solid risk appetite in market on back of the news that the US Bush tax cuts would be extended to all Americans, talk of China rate hike around the weekend and the Irish budget would pass an important vote. Looking ahead, Weekly Oil Inventories are forecast at -1.3m vs. 1.1m previously. The Euro fell to $1.3267, erasing all of Tuesday's gains. It's decline was tempered by news Ireland moved a step closer to securing bailout funds after passing the first in a series of votes in its toughest budget on record. The dollar, which rallied more than 1% against the yen the most in nearly three months was last at 83.83. The outlook for the Pound has been improving lately as market focuses on other currencies problems. The Aussies shed nearly to $0.9789, from a high of $0.9966. The market shrugged off a neutral RBA meeting where they held at 4.75% stating 'rates appropriate' and pushed the commodity currency to week lows.
EUR/USD: The Euro is currently trading at 1.3220 and it touched high of 1.3400 levels. Immediate support comes near 1.3180 levels (21 day Bollinger, 4hr), then next support at 1.2980 levels, strong resistance comes near 1.3410 (21 daily EMA, Weekly). EURINR (59.47) -Importers cover partially at current level. Exporters are suggested to book near term exposure in 60.00 - 60.40 regions. Short term and Medium term: Bearish. EUR/INR is likely to trade in the range of 59.30-59.65 today.
GBP/USD: The Pound is currently trading at 1.5710. Immediate resistance comes near 1.5780 levels (21 days daily EMA), while support is expected around 1.5630 levels (200 days EMA, Daily) and next 1.5480 (Recent low). Exporters are suggested to book Dec month's exposure on spikes near 70.80 - 71.00 levels while Importers can cover partially on dips (70.30) levels. Short Term: Bearish; Medium Term: Neutral. GBP/INR is likely to trade in the range of 70.65-70.90 today.
USD/JPY: USD/JPY is currently trading at 83.87 level. JPY Current Account was 1.46T, lower than previous at 1.66T while Core Machinery Orders m/m was at -1.4%, lower than forecasted at 0%. Looking ahead today Economy Watchers Sentiment expected better at 42.1 than previous at 40.2. Immediate Support is at 83.20 (55 Daily EMA) while immediate resistance is at 84.40(100 Daily EMA). Yen Exporters are suggested to book Dec and Jan month's exposure near 82 levels and Yen Importers can cover their exposure towards 84 levels. Medium Term: Maintain Bearishness.
AUD/USD: The Aussie is currently trading at 0.9790 levels. Home Loans m/m was 1.9%, better than previous at 1.3%. Immediate support comes at 0.9703 levels (55 Daily EMA) while immediate resistance 0.9975 levels. Exporters are suggested to book partial Dec and Jan month's exposure towards 0.99 levels or above and Importers can cover their exposure on dips. Medium term: Bullish
Gold: Gold (1392.40) reverted back from yesterday's fresh high of $1431.28 tracking broad dollar gains against majors. Immediate resistance is at $1410 levels followed by $1,431.28 levels while immediate support comes near 1380 levels followed by downside 1350 levels which are a very important support. Medium term: Maintain bullishness.
DOLLAR INDEX: Dollar Index is currently trading at 80.15 levels. Looking ahead Crude Oil Inventories expected at - 1.3M, then previous 1.1M. The support level is at 79.15 followed by a strong support at 77.80 levels and resistance is at 80.50 levels.
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.