EUR/USD: EUR is currently trading at 1.3609 levels. Euro weakens versus the US dollar amid risk aversion in the market after the parliament of Slovakia stalled the expansion of a bailout fund to rescue the euro zone from the worsening debt crisis, but international lenders said that they will be likely to grant a loan to Greece next month. Yesterday ECB president Jean-Claude Trichet said that the debt crisis had become systemic and must be tackled decisively. Looking ahead Industrial Production m/m data is expected weaker. Support is seen at 1.3500 levels (55 days 4hrly EMA) and resistance is seen at 1.3714 levels (200 days 4 hrly EMA). EUR/INR is at 67.28 levels. Exporters can cover short term exposure at current levels while Importers can cover exposure at 66.00 levels and below. EUR/INR is likely to trade in the range of 66.50 and 67.40 levels for today. Short Term: Bearish Medium Term Bearish. Target 1.3000 levels. EUR/INR should be in the range of 64.00-68.00 levels in the near term.
GBP/USD: GBP is currently trading at 1.5563 levels. The cable is also trading weak amid risk aversion in the market. Support is seen at 1.5500 levels and resistance is seen at 1.5624 levels. GBP/INR (76.94) Exporters can cover short term exposure at current levels and slightly higher while the short term importers can cover on dips towards 76.00 and below levels. GBP/INR is likely to trade in the range of 76.40 and 77.30 levels today. Maintain short term Bearish and Medium Term Bearish. Target 1.5100 levels.
USD/JPY: Yen is currently trading at 76.69 levels. Core Machinery Orders m/m data came out better this morn-ing. Support is seen at around 76.20 levels while resistance is seen at 77.11 levels (55 days daily EMA). Yen ex-porters 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 0.9909 levels. The commodity currency weakens vs. the dollar due to risk aversion in the market amid concern Europe's sovereign debt crisis will worsen and hamper global economic growth, decreasing demand for higher yielding assets. Support is seen at around 0.9822 levels (55 days 4hrly EMA) and resistance is seen at around 1.0065levels (200 days 4hrly EMA). Exporters have already been sug-gested to book export exposure at 1.0300-1.0400 levels and again should cover on any bounce towards 1.0200 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 85.27 levels. Oil weakens on concern that fuel demand will falter after US Senate Blocks Obama's $447B Job Creation Plan and after the parliament of Slovakia stalled the expansion of a bailout fund to rescue the euro zone from the worsening debt crisis. Support is seen at 84.31 levels (200 days 4hrly EMA) while resistance is seen at around 85.94 levels. Outlook: Short term bearish and medium term bearish Tar-get 77 levels.
Gold: Gold is currently trading at 1668.08 levels. Support is seen at 1598.56 levels (200 days daily EMA) and re-sistance is seen at 1709.80 levels (55 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 77.62 levels. Dollar regain strength slightly amid risk aversion after US Senate Blocks Obama's $447B Job Creation Plan and after the parliament of Slovakia stalled the expansion of a bailout fund to rescue the euro zone from the worsening debt crisis and as China said proposed US legislation would disrupt trade relations, increasing demand for the safest assets. Support is seen at 77.02 levels (200 days weekly EMA) and resistance is seen at 78.21 levels (55 days daily 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.