India Forex Advisors / Market Commentary /15_Mar_2011

By @ibtimes on

Dear Reader,

Global Markets:
Dollar Index is trading weak as Euro and YEN got is gains again. Euro rallied continued from Friday on positive news that the new bailout plan will ease the debt crisis and hawkish comments from ECB members about raising rates as early as next meeting. Eur Industrial Production m/m came out neutral at 0.3%. Concerns about the nuclear reactors meltdown have added to volatility in JPY, was extremely volatile until the BOJ helped stabilize the market with the injection of record cash into money markets while limiting bond purchases, signaled the central bank is limiting its role to securing financial stability in the aftermath of the March 11 earthquake. BOJ Governor Masaaki Shirakawa pledged at a news conference in Tokyo to keep pumping cash as needed after unleashing 15 trillion yen in one-day operations yesterday. JPY Overnight Call Rate came out neutral at 0.10%. Aussie RBA indicated that keeping rates decision at current level during the first six month of the year is a proper decision to revive borrowing process as slower borrowing will offsetting a mining investment boom. Asian stock market opened very weak on accounts of Japan earthquakes disaster effect.

Technical Outlook:

EUR/USD: Euro couldn't sustain 1.4000 levels but was still maintaining positive momentum on optimism that the new bailout plan will ease the debt crisis. Immediate resistance is at 1.4016 levels (H4 Upper Bollinger) while Immediate support is seen at 1.3890 levels followed by 1.3839 levels. EURINR (63.06) exporters can cover partially at current levels for March exposure and Importers can cover partially near 62.65 levels. EUR/INR is likely to trade in the range of 62.80 - 63.25 levels today. Short term: Slight bullish and Medium term: bullish. German ZEW Economic Sentiment is expected better today.

GBP/USD: GBP is currently trading at 1.6110 levels. Selling pressure was seen due to weakness of the recovery overpowering the inflation risk and rate hikes risks. Immediate strong support comes at 1.6098 levels (4hrly 200 days EMA) and resistance is seen near 1.6143 levels (21 days daily EMA). GBP/INR (72.95) March month's exporters should cover partially near 73.05 levels and importers cover near 72.80 levels. GBPINR is likely to trade in the range of 72.80-73.10 levels today. Short Term: Slight Bullish and Medium term: bullish

USD/JPY: The pair has remained very volatile since last few trading sessions, currently trading near 81.50 levels. Japan's PM warned that radioactive levels had become high around nuclear power plant after explosions at two reactors, with more risk of radioactive leakage. Immediate resistance is at 82.09 levels while immediate strong support is at 81.21 levels. Yen Exporters are suggested to book March month's exposure partially at current levels while Yen Importers can cover their exposure near 82.50 levels and above. Medium Term: Maintain Bearishness

AUD/USD: The Aussie nosedived and traded below the parity levels near 0.9935 levels after RBA rate bets poised to rise on Japan's exports. Immediate support is seen near 0.9915 levels (21 Weekly EMA) followed by 1.0010 levels while Immediate resistance is seen near 0.9961 levels (Daily 100 EMA) followed by 1.0044 levels. Exporters are suggested to book March month exposure near 1.0100 levels, while Importers can cover their exposure partially near 0.9900 - 0.9950 levels. Medium term: Bullish.

Gold: The yellow metal hovered near $ 1412 levels with more focus over global worries. Meanwhile resistance comes at $ 1417 and 1420.95 levels while support is at 1407.20 and $ 1400 levels and 1411.52 levels. Medium term: Bullish.

Dollar Index: The US dollar index is currently trading near 76.71 levels, up by 0.47%. Market will be more focused on FOMC Statement and TIC Long-Term Purchases due today. Immediate support is at 76.21 levels while immediate resistance is at 76.77 levels followed by 76.97 levels. Short Term: Bearish and Medium Term: Neutral.

DISCLAIMER
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.

Join the Discussion