EUR/USD: Euro is currently trading at 1.3951 levels. Euro collapsed against the dollar heavily on concern the region's sovereign-debt crisis is spreading to other Euro zone countries. Italian 10yr government bond yields rose by 41bp to 5.68, Portugal's rose by 45bp, Spain by 36bp, Ireland by 29bp, Belgium by 18bp, and Greece by 16bp. Yesterday French Industrial production m/m data came out better than expected yesterday. Support is seen at 1.3877 levels (50% Retracement in Daily Fibo) while resistance is seen at 1.4035 levels (200 days daily EMA). EUR/INR (62.29): Exporters can cover short term exposure at 63.50 levels while importers can cover short term exposure at current level. EUR/INR is likely to trade in the range of 62.00-62.45 levels today. Short term: Bearish. Medium term: Bearish.
GBP/USD: The Sterling is currently trading at 1.5868 levels. Sterling is weak against the dollar tracking the heavy collapse yesterday. BRC Retail Sales Monitor y/y came out better at -0.6% than previous figure of -2.1% and RICS House Price Balance data came out weaker than expected this morning. Support is seen at around 1.5800 levels and resistance is seen at 1.6060 levels (21 days daily EMA). GBP/INR (70.82): Exporters can cover short term exposure near 71.50 levels while the importers can cover at current levels. GBP/INR is likely to trade in the range of 70.55 - 71.10 levels today. Short term: Bearish. Medium term: Bearish
AUD/USD: The Aussie is currently trading at 1.0604 levels. Australian dollar collapsed against the dollar on concerns that the global economic recovery is weakening dampening demand for higher yielding currencies. NAB Business Confidence data came out weaker than expected this morning. Support is seen at 1.0532 levels (100 days daily EMA) and resistance is seen at around 1.0624 levels (55 days daily EMA). Exporters are suggested to book exposure at 1.0700 levels while Importers can cover partially their near term exposure at 1.0500. Short term: bullish. Medium term: bearish.
USD/JPY: Yen is currently trading at 80.10 levels. Tertiary Industry Activity m/m data and CGPI y/y came out better than expected. The appreciation in Yen is not however on account of growth prospects but due to risk aversion. Support is seen at around 79.94 levels while resistance is seen at 80.73 levels (21 days daily EMA). Yen Exporters are suggested to book exposure at current levels and Importers can cover above 81.00 levels. Outlook: Short term to medium term: Maintain bullish for the pair.
Gold: Gold is currently trading at 1549.78 levels. Gold rallied as concerns in the Euro zone escalated increasing the shiny appeal of the yellow metal as a hedge against uncertainties. Support is seen at around 1526.03 levels (21 days Daily EMA) while resistance is seen at around 1558.20 levels (High of 22.06.2011). Outlook: Medium term Bullish
Oil: Oil is currently trading at 94.49 levels. Oil fell on concerns that the European debt crisis will spread more and there is speculation that fuel demand may falter. Support is seen at around 94.00 levels while strong resistance is seen at around 95.72 levels (200 days daily EMA). Outlook: Short term Bearish, Medium term neutral.
Dollar Index: DI is currently trading at 75.89 levels. Dollar is positive as risk aversion grips the market on the back of worsening Euro zone debt. Support is seen at 75.54 levels (100 days daily EMA) and resistance is seen at 76.77 levels (200 days daily EMA). Outlook remains neutral for Short Term and Medium Term: Bullish (Post July).
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.