India Forex Advisors / Market Commentary /20_May_2011

By @ibtimes on

Technical Outlook:
EUR/USD: Euro is currently trading at 1.4306 levels. Euro rose on the back of the possibility of soft restructuring for Greece, including extension of the maturities regarding debt and a lowering of the level of the interest rates. Looking ahead German PPI m/m data and Current Account data is expected better. Support is seen at 1.4124 levels (100 days daily EMA) while the resistance is seen near 1.4365 levels (21 days daily EMA). EUR/INR (64.30) Exporters can cover May exposure at current level while importers can cover on dips towards 63 levels. EUR/INR is likely to trade in the range of 64.10-64.45 levels today. Short Term: Bullish Medium term: Maintain Bullishness.

GBP/USD: The Sterling is currently trading at 1.6233 levels. Sterling rises against the euro and the dollar on Thursday after UK retail sales data came out better than expected. Support is seen at 1.6046 levels (200 Days Daily EMA) while resistance is seen at 1.6304 levels (55 days daily EMA). GBP/INR (72.91) Exporters can cover May exposure on 73.50 onwards while the importers can look to hedge partially at 72.50 levels and further on dips. GBPINR is likely to trade in the range of 72.80-73.20 levels. Short Term: Bullish. Medium term: Maintain bullishness.

USD/JPY: Japanese Yen is currently trading at 81.66 levels. Yen continues to depreciate against the euro and dollar on prospects the Bank of Japan will maintain monetary stimulus to support an economy in recession after a record earthquake. Overnight Call Rate is left unchanged at 0.10%. Support is seen at 81.30 levels (21 days daily EMA) while resistance is seen at 82.19 levels (100 days daily EMA). Short term to medium term: maintain Bullishness for the pair.

AUD/USD: Australian Dollar is currently trading at 1.0667 levels. The currency is positive on the expectation that The Reserve Bank of Australia will lift its benchmark rate by 30 basis points over the next 12 months. Support is seen at 1.0546 levels (55 days daily EMA) and resistance is seen at 1.0674 levels (100 days daily EMA). Exporters are suggested to book exposure around 1.0800 levels while Importers can cover their exposure near 1.0500 regions and on dips. Short Term: Bullish. Medium term: Maintain Bullishness.

Dollar Index: Dollar Index is currently trading at 75.09 levels. The dollar fell versus most major currencies after a drop in housing sales data yesterday and on speculation the Federal Reserve will maintain stimulus and keep interest rates low. Support is seen near 74.87 levels (21 days daily EMA) while resistance is seen near 75.37 levels (100 days daily EMA). Outlook remains bearish for Short Term and Medium Term: Bullish (Post July).
Gold: Gold is currently trading at $1495.48 levels. Gold declined on recent speculation that slowing inflation will curb demand for the metal as a hedge against rising consumer prices. Support is seen at 1450.11 (100 days daily EMA) while resistance is seen at 1501.25 (21 days daily EMA). Outlook: Medium term Bullish.

Oil: Oil is currently trading at $99.44 levels. Oil fell for the third day this week after the index of U.S. leading indicators dropped for the first time in 10 months in April and sales of existing U.S. homes declined signals that fuel demand may weaken as the economy struggles to recover. Strong support is seen at 95.11 levels (200 days daily EMA) while resistance is seen at 100.98 levels (100 days daily EMA). Outlook: Medium term Bullish.

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