EUR/USD: Euro is currently trading at 1.4178 levels. Euro continues its collapse against the dollar on worsening Greece issue but recovered some of its losses overnight as IMF's voiced support and expectation of a positive outcome from the next Euro group meeting. Support is seen around 1.4092 levels while resistance is seen at 1.4208 levels (100 days daily EMA). EUR/INR (63.59): Exporters can hold to cover short term exposure while importers can cover on dips near 63.00 levels. EUR/INR is likely to trade in the range of 63.35-63.90 levels today. Short term: Bearish. Medium term: Bearish
GBP/USD: The Sterling is currently trading at 1.6131 levels. Sterling continues its collapse against the dollar as UK retail sales came out weaker then expected yesterday. Support is seen around 1.6096 levels and resistance is seen around 1.6229 levels (21 days 4 hourly EMA). GBP/INR (72.33) Exporters can cover short term exposure near 74.00 levels while the importers can look to hedge partially at 72.00 levels. GBP/INR is likely to trade in the range of 72.18-72.55 levels today. Short term: Bearish. Medium term: Bearish.
USD/JPY: Yen is currently trading at 80.64 levels after making a high of 81.03. Yen rose as the Bank of Japan upgraded its monthly economic assessment for the first time since February, while the economy will return to a moderate recovery in the second half of the fiscal year through March 2012. Moreover, Japanese policy makers noted that economic recovery won't need any stimulus and additional assets by the Bank as the economy has ability to recover again from the March quake as the recession is not too severe. Support is seen at 80.20 levels (psychological) while resistance is seen at 81.18 levels (55 days daily EMA). Yen Exporters are suggested to book exposure at 79.50 and Yen Importers can cover above 82.50 levels. Outlook: Short term to medium term: Maintain Bearish for the pair.
AUD/USD: The AUD is currently trading at 1.0547 levels. The Aussie is trading weak against the greenback on worsening Greece crisis and on speculation that the report will show U.S. consumer confidence fell as the world's largest economy slows, damping demand for higher-yielding assets. Support is seen at 1.0476 levels (100 days daily EMA) and resistance is seen around 1.0599 levels (55 days daily EMA). Exporters are suggested to book exposure around 1.0750 levels while Importers can cover partially their near term exposure at 1.0500 and further on dips. Short term: Neutral to slight bearish. Medium term: Maintain Bullishness.
Gold: Gold is currently trading at 1526.80 levels. Gold is slight positive as weak global outlook will continue to boost demand for the precious metal as an alternative investment. Support is seen at 1509.56 (55 days daily EMA) while resistance is seen at 1532 levels. Outlook: Medium term Bullish.
Oil: Oil is currently trading at 95.28 levels. Oil is in downside pressure on weak US outlook on concerns that worsening Euro zone crisis will dampen the demand for crude oil. Support is seen at 94.28 levels while resistance is seen at 96.74 levels (21 days daily EMA). Outlook: short term slight Bearish, Medium term Bullish.
Dollar Index: DI is currently trading at 75.41 levels. Dollar Index is stable across the board as riskier assets recovered some of their losses overnight on optimism that positive outcome can come from the next week EU meeting over Greece issue. Looking ahead Prelim UoM Consumer Sentiment data is expected weaker. Support is seen at 75.08 levels (55 days daily EMA) and resistance is seen at 75.80 levels (100 days daily EMA). Outlook remains Bullish for Short Term and Medium Term: Bullish (Post July).
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.