EUR/USD: Euro is currently trading positive at 1.4420 levels. The euro rallied, it is trading above 1.44 levels on positive sentiment that more bailout funds for Greece would be available and default would be avoided. Yesterday German Retail Sales m/m data and CPI Estimate y/y data were weaker than expected and Unemployment Rate data was neutral. Looking ahead Manufacturing PMI data is expected neutral. Support is seen at 1.4304 levels (200 days 4 hourly EMA) while resistance is seen at 1.4450 levels. EUR/INR (64.86): Exporters can cover partially short term exposure at current levels while importers can cover on dips near 63.50 levels. EUR/INR is likely to trade in the range of 64.50-64.90 levels today. Short Term: Neutral to bearish, Medium term: Slight bearish.
GBP/USD: The Sterling is currently trading at 1.6463 levels and touched high of 1.6545 levels yesterday. Sterling collapsed versus dollar as investors sold it against the euro to meet month-end requirements; UK economic recovery would remain uneven also weighed on the currency. Support is seen around 1.6400 levels and resistance is seen at 1.6540 levels (200 days weekly EMA) GBP/INR (74.05) Exporters can cover short term exposure near 74.30- 74.40 levels while the importers can look to hedge partially at 72.80 levels and further on dips. GBPINR is likely to trade in the range of 73.90-74.15 levels today. Short Term: Neutral to bearish. Medium term: Slight bearish.
USD/JPY: The pair is currently trading at 81.17 levels. Gain from previous day close of 81.50 levels on note of Bank of Japan Governor Mr. Shirakawa said today morning that Supply constraints from the earthquake are easing faster than expected. Rebuilding is helping to prop up growth, must reallocate resources to promote growth. Fitch cuts outlook to Negative from Stable Resistance is seen near 81.75 (55 days Daily EMA) while support is seen near 80.60 levels. Yen Exporters are suggested to book exposure at 80.20 and Yen Importers can cover partially near 82.40 plus levels. Short term to medium term: Maintain Bullishness for the pair.
AUD/USD: Australian Dollar is currently trading at 1.0747 levels. The commodity currency gained against all of its major counterparts after the GDP report showed the economy contracted 1.2 percent which is better then forecasted. Support is seen at 1.0650 levels (21 days daily EMA) and resistance is seen around 1.0800 levels. Exporters are suggested to book exposure around 1.0800 levels while Importers can cover partially their near term exposure at 1.0600 and further on dips. Short Term: Neutral to slight bearish. Medium term: Maintain Bullishness.
Gold: The Gold is currently trading at 1530 levels. Gold declined yesterday on speculation of Greece getting funds, avoiding sovereign debt and U.S Treasuries fell as the Dow, Nasdaq, and S&P rose on the better than expected consumer confidence reading. Support is seen at $1515 levels (21 days daily EMA) while resistance is seen at $1574 levels (last high) and next $1600 (psychological resistance). Outlook: Medium term Bullish.
Oil: Oil is currently trading at 102.95 levels. Oil gained for a third day as signals that the European Union will approve aid for Greece without forcing a debt default stoked speculation fuel demand will increase. Support is seen at 99.71 levels (100 days daily EMA) while resistance is seen at 104.70 levels. Outlook: Medium term Bullish.
Dollar Index: DI is currently trading at 74.50 levels. The dollar is weak mostly across the board on the accounts of continuous weak data from US front. Yesterday S&P/CS Composite-20 HPI y/y data, Chicago PMI data and CB Consumer Confidence data came out weaker than expected. Looking forward ADP Non-Farm Employment Change data and ISM Manufacturing data is expected weak Support is seen at 74.40 levels and resistance is seen at 75.10 levels (21 days daily EMA). Outlook remains Neutral to slightly Bullish for Short Term and Medium Term: Bullish (Post July).