Technical Outlook:EUR/USD: Euro is currently trading at 1.4230 levels. Euro rallied vs. the dollar as Fed Chairman Ben Bernanke said policy makers will provide economic stimulus if needed. Yesterday Industrial Production m/m data came out weaker than expected. Looking ahead CPI y/y data is expected neutral and Core CPI y/y data is also expected neutral. Support is seen at around 1.4130 levels while resistance is seen at 1.4290 levels (21 days daily EMA). EUR/INR (63.19): Exporters can cover short term exposure at 63.70 levels while importers can cover short term exposure at 62.00. EUR/INR is likely to trade in the range of 62.80-63.45 levels today. Short term: Bearish. Medium term: Bearish.
GBP/USD: Sterling is currently trading at 1.6140 levels. Yesterday Claimant Count Change data came out weaker and Average Earnings Index 3m/y data came out better than expected. Support is seen at around 1.6040 levels. GBP/INR (71.77): Exporters can cover short term exposure near 72.25 levels while the importers can wait to hedge near 71.00 levels. GBP/INR is likely to trade in the range of 71.48 - 72.00 levels today. Short term: Bearish. Medium term: Bearish.
USD/JPY: Yen is currently trading at 78.61 levels. Support is seen at around 76.40 levels while resistance is seen at 81.40 levels (21 days daily EMA). Yen Exporters are suggested to book exposure at current levels and Importers can cover above 80.00 levels. Outlook: Short term to medium term: Maintain Bearish for the pair.
AUD/USD: The Aussie is currently trading at 1.0750 levels. MI Inflation Expectations data came out better at 3.4 then the previous figure of 3.3% this morning. The commodity currency rallied as risk sentiment returns on the indication of further stimulus from Mr. Ben Bernanke. Support is seen at 1.0670 levels (21 days daily EMA) and resistance is seen at around 1.0800 levels. Exporters are suggested to book exposure at 1.0800 levels and above while Importers can cover partially their near term exposure at 1.0500. Short term: bullish. Medium term: bearish.
Gold: Gold is currently trading at 1584.13 levels. Gold rallied and made another all time high as investors started parking money in the yellow metal to safeguard their wealth. Support is seen at around 1538.00 while resistance is seen at around 1600.00 levels Outlook: Medium term Bullish target 1650.
Oil: Oil is currently trading at 97.66 levels. Strong Support is seen at 95.95 levels (21 and 200 days daily EMA) while resistance is seen at 98.36 levels (100 days daily EMA). Outlook: Short term Bearish, Medium term neutral.
Dollar Index: DI is currently trading at 74.95 levels. Dollar weakens against most of the major currencies as risk sentiment grips the market after Fed Chairman Ben Bernanke said policy makers will provide economic stimulus if needed . Looking ahead Core Retail Sales m/m is expected weak, PPI m/m is expected weak, Retail Sales m/m is expected better and Unemployment Claims is expected better. Support is seen at 74.35 levels (Trend line support) and Resistance is seen at 75.30 levels (100 days daily EMA). Outlook remains Slight bullish for Short Term and Medium Term: Bullish
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