The EURUSD is currently trading at 1.2590 levels after touching a low of 1.2550 levels. It would confirm a major top once we see a break below 1.2480 on a closing basis. It has been moving higher due to good bond auctions in eurozone countries , and poor US data overall and increased risk appetite in overall market seen last few days. It seems to be in a medium term correction phase with a overall bias is bearish below 1.30 levels. A sustained break of 1.2480 would confirm that the upside bias would be over. We had suggested exporters to cover at every rise and we still maintain that. Our previous bearish targets 1.20 and below had reached few days back. (refer previous reports). (EURUSD - 1.2590).Neutral
GBPUSD is currently trading at 1.5026 levels and it should soon form a top or already a top would have been made at 1.5231 . Break of 1.4940 on a! consistent basis would confirm the scenario of a top in place! and sup port a major bearish reversal. We have started seeing 5 waves falling pattern in GBP which gives credence of an expected fall. Exporters can look at covers at current levels. Medium term importers hold for buying pound. (GBPUSD - 1.5026). Neutral
USDJPY is currently trading at 88.58 levels. YEN seems to be bottoming soon and heading towards a 90-92. Cautious buys in the pair can be initiated. Yen Exporters may book partially. (USDJPY 88.58)
AUDUSD is currently trading at 0.8737 levels. It is still maintaining bearish bias till we see downside in commodities to maintain. It should encounter good resistance around 0.8800 levels. Bearish and shorts could be made on upticks. (AUDUSD - 0.8737)
Gold is currently trading at $1199 levels and its bias is bullish above $1160 dollars. It has reached our previous target of 1250 . We had recommended a steep correction in gold which we saw recently. Buy on dips is recommended with a! stop below $1150 dollars. (refer previous reports). (Gold- $1199) Overbought.
The dollar index weakness from May looks corrective. It suggests we continue to favour the dollar despite its sharp fall since May. In all cases the setback looks mature and in some as though the turn back in favour of the dollar has occurred. We have yet to identify a reason to alter the strong dollar scenario. We will stick with it currently. Break of 85 would confirm bullish outlook. (Dollar Index- 84.20) Overall Bullish