Technical Outlook:EUR/USD: Euro is currently trading at 1.4073 levels. The Euro declined against the Greenback as Moody's Irish debt to junk and 8 (2 Greek, 5 Spanish and 1 Austrian bank) of the 90 banks that took part in the European Banking Authority recent stress tests failed, with further 16 banks still in the danger zone. Support is seen at 1.4039 levels (200 days daily EMA) while resistance is seen at 1.4132 levels (21 days 4 hourly EMA). EUR/INR (62.70): Exporters can cover short term exposure at 63.70 levels while importers can cover short term exposure at 62.00. EUR/INR is likely to trade in the range of 62.48-62.95 levels today. Short term: Bearish. Medium term: Bearish.
GBP/USD: Sterling is currently trading at 1.6088 levels. The pound is weak vs. the dollar as risk aversion gains ground on concern Euro zone debt will continue to haunt. Support is seen at 1.6000 levels and resistance is seen at 1.6155 levels (55 days daily EMA). GBP/INR (71.69): Exporters can cover short term exposure near 72.25 levels while the importers can wait to hedge near 71.00 levels. GBP/INR is likely to trade in the range of 71.45-72.00 levels today. Short term: Bearish. Medium term: Bearish.
AUD/USD: The Aussie is currently trading at 1.0611 levels. All eyes will be firmly placed on the minutes of Reserve Bank of Australia's meeting in order to get some clues regarding an interest hike on Tuesday this week. Support is seen at 1.0546 levels (100 days daily EMA) and resistance is seen at 1.0632 levels (55 days daily EMA). Exporters are suggested to book exposure at 1.0700 levels and above while Importers can cover partially their near term exposure at 1.0500. Short term: bullish. Medium term: bearish.
USD/JPY: Yen is currently trading at 79.04 levels. Support is seen at around 78.57 levels while resistance is seen at 80.06 levels (21 days daily EMA). Yen Exporters are suggested to book exposure at current levels and Importers can cover above 80.50 levels. Outlook: Short term to medium term: Maintain Bearish for the pair.
Oil: Oil is currently trading at 97.20 levels. Support is seen at 96.83 levels (200 days 4 hourly EMA) while resistance is seen at 98.23 levels (100 days daily EMA). Outlook: Short term Bearish, Medium term neutral.
Gold: Gold is currently trading at 1593.23 levels after making a record high with almost touching the $1600 dollars mark. Gold continues to rally as US politicians failed to reach agreement on raising the debt ceiling and Europe's sovereign crisis continues to haunt the Euro zone, boosting alternate safe haven demand. Support is seen at around 1563.40 while resistance is seen at around 1600.00 levels Outlook: Medium term Bullish target 1650.
Dollar Index: DI is currently trading at 75.23 levels. Dollar is positive against most of the major counter parts as Euro zone debt crisis continues boosting demand for dollar as safe heaven. Looking ahead TIC Long-Term Purchases data is expected better. Strong Support is seen at 75.05 levels (21 and 55 days daily EMA) and Resistance is seen at 75.53 levels (100 days daily EMA). Outlook remains Slight bullish for Short Term and Medium Term: Bullish.
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.