EUR/USD: EUR is currently trading at 1.3448 levels. Euro rises vs. the greenback amid news that Angela Merkel and Nico-las Sarkozy will device a plan in three weeks to recapitalize banks and to get Greece on the right track in order to contain the Euro zone debt crisis. EUR German Industrial Production m/m data came out better last Friday. Looking ahead French Industrial Production m/m data is expected weak. Support is seen at 1.3398 levels (21 days 4hrly EMA) and resistance is seen at 1.3528 levels (100 days 4 hrly EMA). EUR/INR is at 66.01 levels. Exporters can cover short term exposure at current levels while Importers can cover exposure at 64.00 levels and below. EUR/INR is likely to trade in the range of 65.60 and 66.30 levels for today. Short Term: Bearish Medium Term Bearish. Next Target 1.3000 levels. EUR/INR should be in the range of 64.00-66 levels in the near term.
GBP/USD: GBP is currently trading at 1.5590 levels. The cable rallied on risk sentiment and on expectation that BOE deci-sion to expand assets purchase by 75 billion pounds will spur growth in the weakening UK economy. As expected the key interest rates were left unchanged yesterday by the BOE. Support is seen at 1.5523 levels (55 days 4hrly EMA) and resis-tance is seen at around 1.5681 levels. GBP/INR (76.52) Exporters can cover short term exposure at current levels and slightly higher while the short term importers can cover on dips towards 75 and below levels. GBP/INR is likely to trade in the range of 75.80 and 76.40 levels today. Maintain short term Bearish and Medium Term Bearish. Target 1.5100.levels.
USD/JPY: Yen is currently trading at 76.75 levels. Support is seen at around 76.12 levels while resistance is seen at 77.14 levels (55 days daily EMA). Yen exporters are suggested to book exposure partially at current levels and Importers can cover above 78.00 levels. Outlook: Short Term slight Bullish and Medium Term: Maintain bearish for the pair. USD/JPY pair should range in 76-78 levels. Bounce back till 80 levels is possible. Yen exporters should cover at current levels.
AUD/USD: AUD is currently trading at 0.9810 levels. The commodity currency rises vs. the greenback amid risk sentiment in the market, increasing demand for higher yielding assets. Support is seen at around 0.9678 levels and resistance is seen at around 0.9958 levels. Exporters have already been suggested to book export exposure at 1.0300-1.0400 levels and again should cover on any bounce towards .9900 levels while Importers can cover partially their near term exposure at current levels and further on dips. Short Term: Bearish Medium Term: Bearish. Target 0.9500 .
Oil: Oil is currently trading at 83.42 levels. Oil rises on optimism that demand for oil will not falter after better than expected Non-farm employment data last Friday and on optimism that European officials will be able to contain the debt crisis after the pledge done by German Chancellor Angela Merkel and Nicholas Sarkozy yesterday to recapitalize banks and to get Greece on the right track. Support is seen at 82.13 levels (100 days 4hrly EMA) while resistance is seen at 85.40 levels (55 days daily EMA). Outlook Short term bearish and medium term bearish Target 77 levels.
Gold: Gold is currently trading at 1650.98 levels. Gold rises slightly but as dollar weakens and on optimism that recession will be averted as European officials were making progress in taming the Euro zone sovereign-debt crisis. Support is seen at 1597.04 levels (200 days daily EMA) and resistance is seen at 1681.27 levels (100 days daily EMA). As suggested at 1800 dollars gold is in consolidation phase. Stay away from longs until we see significant corrections. Gold is Bearish short term target 1500 dollars. Look at initiating shorts at good resistances.
Dollar Index: DI is currently trading at 78.73 levels. Risk sentiment is prevailing slightly as German chancellor Angela Merkel and Mr. Nicolas Sarkozy have pledge to device a plan in three weeks to recapitalize banks and to get Greece on the right track in order to contain the Eurozone debt crisis from spreading. Looking ahead Non-Farm Employment Change data is expected better and Unemployment Rate data is expected neutral. Support is seen at 77.94 levels (100 days weekly EMA) and resistance is seen at 79.63 levels (200 days weekly EMA). Outlook remains slight bullish for Short term and Medium Term: Bullish. Target is 80 soon.
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.