India Forex Advisors / Market Commentary / 18_May

By IBTimes Staff Reporter | May 18 2010 3:08 AM

The EURUSD is currently trading at 1.2345 already breaking below our target of 1.2350 (please refer our earlier reports) .We had advised exporters to cover at 1.30 levels for medium term (refer week back update). Bearish-target 1.2000 & below. (EURUSD - 1.2345).

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GBPUSD is currently trading at 1.4438 levels . The bias clearly bearish further down. We got some exporters covered few days back at 1.5050 levels (refer previous updates). We have reached our target of 1.45 levels as expected (Refer previous update). We are still bearish on the pair. Target 1.41 & below. (GBPUSD 1.4438). Bearish.

USDJPY is currently trading 92.48 levels. We have not seen a break of 94.50 consistently since so many days. Moroever we are witnessing a huge risk aversion in global markets pushing usd/jpy lower everytime. Please note that the yen is also not getting strong the way it should be , so any retracements in the currencies would push yen above 94. (USDJPY 92.48) Neutral.

AUDUSD is currently trading at 0.8726 levels. Exporters got booked few days back at 0.9050 levels. Target of .8700 achieved . (AUDUSD - 0.8726).

Gold is currently trading at $1225 levels and its bias is clearly on the upside. It had reached our target of 1st Target of 1200 dollars and 2nd target of 1240 levels. Buying on dips remains the strategy. (Gold- $1225) Bullish.

The Index has reached our target of 86.00. Dollar index's rise from 74.19 has accelerated after staying firm above upper channel resistance. The powerful impulsive move is in line with our view that rise from 74.19 is resuming the long term up trend from 70.70. The next objective rests at 87.14. That's where wave three (in rally sequence from 82.90) will be 1.618x wave one .(Dollar Index- 86.46) Overall Bullish