EUR/USD: EUR is currently trading at 1.3501 levels. Euro weakened vs. the US Dollar amid continuing debt crisis in the EU as yesterday Moody's warned France's AAA rating's stable outlook is at risk due to increasing funding costs. Risk aversion is also prevailing due to failure of US Congress's budget super committee to reach agreement on cutting the US deficit. Support is seen at around 1.3439 levels and resistance is seen at around 1.3579 levels. EUR/INR is at 70.71 levels. Exporters and traders have already been suggested to cover short to medium term exposure between 1.37-1.40 levels in EUR/USD leg only while Importers can cover exposure at 67-68 levels and below. EUR/INR is likely to trade in the range of 70.50 and 70.90 levels for today. Short Term: Bearish Medium Term Bearish. Target 70 and 1.3500 achieved. Exporters can look at partial covers.
GBP/USD: GBP is currently trading at 1.5647 levels. The cable is weak vs. the US Dollar and Euro amid weaker Rightmove HPI m/m data yesterday as UK home sellers are reducing asking prices due to concern of economic growth outlook of UK deteriorating. Support is seen at around 1.5560 levels and strong resistance is seen at around 1.5700 levels. GBP/INR is at 81.93. GBP/INR is likely to trade in the range of 81.50 and 82.20 levels today. GBP/INR may not fall much due to weakening rupee. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 levels. Exporters can look at covers at current levels partially.
USD/JPY: Yen is currently trading at 77.05. Yen depreciated as a correction was due after days of appreciation in the USD/JPY pair and it also depreciated on concerns of possible Japanese government intervention. Support is seen at around 76.29 levels while resistance is seen at 77.52 levels (100 days daily EMA). Outlook: Short Term slight Bearish and Medium Term: Maintain bearish for the pair. Next target 76 again.
AUD/USD: The commodity currency continues to trade below parity at 0.9860 levels. Downside pressure continues on the commodity currency amid risk aversion, decreasing demand for higher-yielding assets. Support is seen at 0.9793 levels (100 days weekly EMA) and resistance is seen at parity levels. Exporters have already been suggested to book covers at 1.0400 and now Importers can start covering below .9700-9800 levels. Short Term: Bearish Medium Term: Bearish. Target: 1.0 achieved.
Oil: Oil is currently trading at 97.03 levels. Oil dropped on speculation fuel demand is likely to falter amid signs of global weakness and due to debt crises in the US and Europe. Support is seen at 96.11 levels (100 days 4 hrly EMA) while resistance is seen at 98.05 levels (21 days 4 hrly EMA). Outlook: Short term bullish and medium term bearish. Target 90 levels again. Look at shorts at stiff resistances for medium term.
Gold: Gold is currently trading at 1684.50 levels. Stronger dollar on the board and over bought nature of the precious metal continue to curb gold demand as an hedge against inflation and uncertainties. Gold continue to trade weak amid strong dollar on the board as Investors continue to prefer the US Dollar over the yellow metal. Support is seen at 1634.97 levels (200 days daily EMA) and resistance is seen at 1702.43 levels (100 days daily EMA). As suggested at 1800 Stay away from longs until we see significant corrections. Look at Initiating shorts at good resistances. Outlook stays neutral in the range of 1600-1750 with slight bearish bias
Dollar Index: DI is currently trading at 78.34 and made a high of 78.51 today. DI is very bullish and it is slowly inching towards our target of 79 again. Flight to safety continues as Investors are stacking up more and more dollar and US Treasuries amid continuing debt crisis in the EU as yesterday Moody's warned France's AAA rating's stable outlook is at risk due to increasing funding costs. Risk aversion is also prevailing due to failure of US Congress's budget super committee to reach agreement on cutting the US deficit. Support is seen at 77.79 levels (100 days weekly EMA) and resistance is seen at 79.29 levels (200 days weekly EMA). Short term and Medium Term: Bullish. Target 79 again.
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.