India Forex Advisors / Market Commentary / 12_May

By IBTimes Staff Reporter | May 12 2010 2:51 AM

EURUSD : The EURUSD is currently tradin! g at 1.2620 levels after touching a high of 1.3087 levels couple of days back. As expected retracement is OVER. Overall the scenario remains bearish for Euro. We had advised exporters to cover at 1.30 levels for medium term (refer 2 days update). We again look towards 1.24 levels to happen in 1-2 months timeframe. (EURUSD - 1.2620)

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GBPUSD : GBPUSD is currently trading at 1.4896 levels. The bias is bearish further down to 1.45 levels. We got some exporters covered couple of days back at 1.5050 levels (refer previous updates). We had expected Gbp to retrace majorly after 1.46 which has happened recently (Refer 1 week reports) . We are still bearish on the pair targetting 1.45 and below. (GBPUSD 1.4896). Bearish.

USDJPY : USDJPY is currently trading 92.52 levels. We have not seen a break of 94.50 consistently since so many days. Moroever we are witnessing a huge risk aversion in global markets pushing yen lower everytime. Incase this continues further we! may not see the yen weaker immediately. (USDJPY 92.52)Neutral!

AUDUSD : AUDUSD is currently trading at 0.8895 levels. We have got our importers covered at 0.8750 levels (refer Fridays report) . Exporters got booked yesterday at 0.9050 levels. Bias is bearish (AUDUSD - 0.8895). Neutral.

Gold : Gold is currently trading at $1232 levels and its bias is clearly on the upside. It had reached our target of 1st Target of 1200 dollars and approaching near our 2nd target of 1240 levels. Buying on dips remains the strategy. (Gold- $1232) Bullish.

Dollar Index : The Index should push above 85.26, at a minimum. Dollar index's rise from 74.19 has accelerated after staying firm above upper channel resistance. The powerful impulsive move is in line with our view that rise from 74.19 is resuming the long term up trend from 70.70. We'd expect a test on 87 high sooner or later depending how fast stock market selling intensifies. Strong support comes near 82 levels . Dollar index is clearly bullish above 80 levels. (Dollar Index! - 84.85) Overall Bullish.