Technical Outlook:
EUR/USD: Euro is currently trading at 1.4418 levels. The euro fell against the dollar as European Union officials struggle to break a deadlock on a second Greek rescue plan. Looking ahead Industrial Production m/m data is expected neutral. Support is seen around 1.4394 levels (200 days 4 hourly EMA) while resistance is seen at 1.4431 levels (100 days 4 hourly EMA). EUR/INR (64.43): Exporters can hold to cover short term exposure while importers can cover on dips near 64.00 levels. EUR/INR is likely to trade in the range of 64.25-64.70 levels today. Short term: Bullish. Medium term: Bearish.
GBP/USD: The Sterling is currently trading at 1.6367 levels. The pound fell vs. the dollar as BOE will not raise interest rates very soon on back of inflation data came out neutral at 4.5% Looking ahead Claimant Count Change data is expected to be better and Average Earnings Index 3m/y data is expected weak. Strong Support is seen at 1.6356 levels (21 and 100 day 4 hourly EMA) and resistance is seen around 1.6441 levels. GBP/INR (73.17) Exporters can cover short term exposure near 74.00 levels while the importers can look to hedge partially at 72.50 levels and below. GBP/INR is likely to trade in the range of 72.95-73.42 levels today. Short term: bullish. Medium term: Bearish.
USD/JPY: The Yen is currently trading at 80.42 levels. The Yen moved higher after the Bank of Japan announced a new loan program for banks and the BOJ held rates at 0.1%. Resistance is seen at 81.20 levels (55 days Daily EMA) while support is seen around 80.00. Yen Exporters are suggested to book exposure at 79.50 and Yen Importers can cover above 82.50 levels. Short term to medium term: Maintain Bearish for the pair.
AUD/USD: The AUD is currently trading at 1.0698 levels. Australian dollar is positive after central bank Governor said that policy makers will need to raise interest rates. Support is seen at 1.0640 levels (21 days daily EMA) and resistance is seen around 1.0742 levels Exporters are suggested to book exposure around 1.0750 levels while Importers can cover partially their near term exposure at 1.0550 and further on dips. Short term: Neutral to slight bearish. Medium term: Maintain Bullishness.
Gold: Gold is currently trading at 1525.72 levels. Gold jumped on speculation that an improving global economy will spur inflation, boosting demand for the precious metal as a hedge. Support is seen at 1508.30 (55 days daily EMA) while resistance is seen at 1527.30 levels (21 days 4 hourly EMA). Outlook: Medium term Bullish.
Oil: Oil is currently trading at 99.12 levels. Oil traded positive after reports showed U.S. retail sales came out better then expected yesterday increasing speculation fuel demand in the world's biggest crude consumer will increase. Support is seen at 98.77 levels (21 days 4 hourly EMA) while resistance is seen at 99.47 levels (55 days 4 hourly EMA). Outlook: Medium term Bullish
Dollar Index: DI is currently trading at 74.42 levels. Yesterday PPI and Retails sales data came out better then expected and looking ahead Core CPI m/m data is expected neutral, TIC Long-Term Purchases and Industrial Production m/m data is expected better. Support is seen at 73.55 levels and resistance is seen at 74.59 levels (21 days daily EMA). Outlook remains Neutral for Short Term and Medium Term: Bullish (Post July).