India Forex Advisors Market Commentary 15

By IBTimes Staff Reporter | July 15 2010 5:12 AM

The EURUSD didn't make significant movement yesterday. The bias is neutral to slightly bullish in nearest term but we are still in upside correction scenario testing 1.2850 - 1.2900 area. We see Immediate support at 1.2650. Break below that area could trigger further bearish pressure testing the 1.2550 area but as long as price move inside the bullish channel we are still in upside correction phase . Please note that the overall medium term bias is bearish below 1.30-1.31 levels. (EURUSD - 1.2740). Neutral

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The GBPUSD continued its bullish momentum yesterday, topped at 1.5295 and closed at 1.5264. The bias remains bullish in nearest term . However the indicators are overbought so watch out for potential downside pullback testing 1.5200 - 1.5150 support area. Overall we are still in strong upside correction phase after the failure to consistently move below 1.5000 support area and only a movement back below 1.4970-80 could diminish the upside scenario. Exporters can look at covers at current levels. (GBPUSD - 1.5270). Neutral

The USDJPY attempted to push lower yesterday, but still unable to break below 88.00 area. The bias remains neutral in nearest term. The major trend remains bearish but need a consistent move below 88.00 to continue the bearish pressure at least testing 87.00. On the upside, we need a clear break above 89.15/50 area to continue bullish correction testing 90.50. The pair still stands bearish. (USDJPY-88.09) Bearish

The AUDUSD slipped above 0.8858 yesterday but still unable to move consistently above that area. The bias remains bullish in nearest term but we need a consistent move above 0.8858 to continue the bullish scenario testing 0.8970 and 0.9025 area. Immediate support at 0.8700 - 0.8660 area. Stay away from longs due to chinese slowdown pressures increasing. (AUDUSD - 0.8858).

Gold is currently trading at 1211 levels and a break of 1215.1 minor resistance suggests that short term bottom is in place at 1185 and lengthier consolidation would be seen. Intraday bias is mildly on the upside for further recovery. Nevertheless, note that risk will remain heavily on the downside as 1266.5 resistance holds, and we'd expect another decline sooner or later. Below 1196.1 will flip intraday bias back to the downside for 1185 and then 1166 support. Buying close to 1170-75 dollars is recommended. (Gold- $1211) Bullish.

Dollar Index - The Dollar index's brief recovery completed at 84.56 yesterday and dropped sharply through the medium term trend line support. The consistent Break of 38.2% retracement of 74.19 to 88.70 at 83.15 will solidify this bearish case and bring deeper decline going forward towards 80.04 support, which is close to 80 psychological level as well as 61.8% retracement at 79.73. Incase we don't see 84.56 resistance breaking we have to look for further weakness in the index. (Dollar Index- 83.24) Neutral