Technical Outlook:EUR/USD: Euro is currently trading at 1.4108 levels. The Euro recovered with a slight bounce off from a psychological support level of 1.4000. It still remains in selling pressure on the back of continuing concerns that European leaders will be unable to agree on any concrete solutions to contain the debt crisis. Support is seen at 1.4040 levels (200 days daily EMA) while resistance is seen at 1.4170 levels (55 days 4 hourly EMA). EUR/INR (62.83): Exporters can cover short term exposure at 63.20 levels while importers can cover short term exposure at 62.40. EUR/INR is likely to trade in the range of 62.50-63.20 levels today. Short term: Bearish. Medium term: Bearish.GBP/USD: Sterling is currently trading at 1.6072 levels trading weaker against its US counterpart after the UK house prices declined in July providing further evidence that interest rates are likely to remain low for an extended period. Support is seen at 1.6051 levels (55 days 4hrly EMA) and resistance is seen at 1.6119 levels (200 days 4hrly EMA). GBP/INR (71.60): Exporters can cover short term exposure near 72.00 levels while the importers can wait to hedge near 71.20 levels. GBP/INR is likely to trade in the range of 71.35-72.00 levels today. Short term: Bearish. Medium term: Bearish.AUD/USD: The Aussie is currently trading at 1.0614 levels. RBA said after the release of its Monetary Policy Meeting Minutes that there is scope to extend an interest-rate pause because risks posed by Euro zone debt crisis and a slower than forecast domestic recovery eased inflation concerns. Support is seen at 1.0547 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 partially cover their near term exposure at 1.0500 levels. Short term: bullish. Medium term: bearish.USD/JPY: Yen is currently trading at 79.07 levels. Support is seen at around 78.45 levels while resistance is seen at 79.97 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 96.44 levels. It is under selling pressure as investors bet that Europe's worsening debt crisis will slow down the economy and it will decrease oil demand. Support is seen at 95.76 levels (200 days daily EMA) while resistance is seen at 97.50 levels (55 days daily EMA). Outlook: Short term Bearish, Medium term neutral.Gold: Gold is currently trading at 1602.46 levels. It has hinged above the 1600 mark on account of debt concerns in Europe. Support is seen at around 1593 while resistance is seen at around 1607.37 levels Outlook: Medium term Bullish target 1650.Dollar Index: DI is currently trading at 75.23 levels. Dollar Index is steady against the basket of currencies as Euro zone debt crisis continues boosting demand for safe heaven assets. Looking ahead Building Permits is expected neutral. Strong Support is seen at 75.07 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.
DISCLAIMER
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.