India Forex Advisors / Market Commentary / 16_April

By IBTimes Staff Reporter | April 16 2010 3:26 AM

The EURUSD is currently trading at 1.3543 levels. It has moved 200-300 pips as expected . We do not see immediate bearishness below 1.3260 levels. We have recommended to sell at least 50% rom 1.3650 - 1.3700 levels for exporters for April and May . Importers have already taken significant covers near 1.33 levels earlier (refer last week update). Please note that the Monthly charts are signalling that Euro is highly oversold and may strengthen further till 1.38-1.40 levels in the coming 1-2 months incase 1.3650 breaks on a consistent basis. Buying on dips remains the strategy till 1.33 holds support. (EURUSD - 1.3543). - Neutral to Slight Bullish

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GBPUSD is currently trading at 1.5435 levels. We might get retracements above 1.55-57 levels. We have started covering for exporters from 1.55 levels onwards till April and May. GBP/INR cover exports at 69 levels onwards. Near term imports are already covered for clients (refer last week update) around 67-68 levels. (GBPUSD 1.5435). Please note that the Monthly charts are signalling that GBP is highly oversold and may strengthen further till 1.58-1.60 levels in 1-2 months only if we see 1-2 closings above 1.55 levels. - Neutral to Slight Bullish

USDJPY is currently trading 92.70 levels. Yen is taking strong resistance near 93.80 , break of this and 94.30 would move towards 98 levels. Weekly close above 92 levels has increased chances for a move towards a 96-98 levels. Importers hold for covers till 95 levels atleast. Buys could be initiated at dips around 92.50-93 levels stoploss at 89 levels. Exporters who have not booked book for 2-3 months at 93 levels. (USDJPY- 92.70). Bearish heading towards a 96-98 levels by April end. Long Term (3-6 months) Target 100 and higher. WE JUST NEED A CONSISTENT BREAK OF 94.30 TO MAKE THIS HAPPEN.

AUDUSD is currently trading at 0.9300 levels. Importers cover on dips. Exporters in Aud may start booking from 0.9350 onwards partially. Since the Aud has increased interest rates and Gold is holding above 1135 dollars we would stay away from shorts. Buying on dips is recommended. (AUDUSD - 0.9300). Bullish.

Gold is currently trading at $1154 levels and it is continously moving up as expected. The bias is clearly on the upside since it has broken the band of 1080-1130 levels. Buy on dips remains strategy.(Gold- $1154) Bullish.

Dollar Index would possibly spiral down to 79.51 support , as dollar would be pressured by more strength in crude oil. Nevertheless, as the impulsive nature of the rise from 74.19 affirmed our view that dollar index has bottomed at 74.19 already, we'd expect current pull back from 82.24 to be contained by 50% retracement of 74.19 to 82.24 at 78.21 and bring another medium term rally. Support at 79.50 is crucial for Dollar Index. (Dollar Index 80.62) Bullish.