Technical Outlook:

EUR/USD: EUR is currently trading at 1.3042 levels. Euro saw a short relief rally which evaporated soon yesterday after a larger than expected uptake of EUR489bn by ECB for EU banks was initially greeted with enthusiasm but soon the market realized that the liquidity is only provided to fill the gap of bond maturities in Q1 and while helpful it does not fundamentally address deep seated EU sovereign solvency and default risks. Euro is also trading under pressure after weaker than ex-pected Italian GDP numbers. Support is seen at around 1.2951 levels and resistance is seen at 1.3108 levels (55 days daily EMA). EUR/INR is at 68.82 levels. EUR/INR is likely to trade in the range of 68.50 and 68.95levels for today. Short Term: Bearish Medium Term Bearish Target 1.25. Exporters have already been asked to cover at 70 plus levels. Short Term: Bear-ish Medium Term Bearish Target 1.30 achieved next target 1.25

GBP/USD: GBP is currently trading at 1.5663 levels. Sterling is positive vs. the US Dollar after ECB's three-year lending pro-gram for EU banks failed to decrease concerns about the Euro zone massive debt crisis. Support is seen at 1.5606 levels (100 days 4 hrly EMA) and resistance is seen at 1.5822 levels (100 days daily EMA). GBP/INR is at 82.69. GBP/INR is likely to trade in the range of 82.50 and 83.00 levels today. Maintain short term Bearish and Medium Term Bearish. Next target 1.53

USD/JPY: Yen is currently trading at 78.06 levels. Strong support is seen at 77.77 levels (21 and 100 days daily EMA) while resistance is seen at 78.94 levels (200 days daily EMA). Outlook: Short Term slight Bullish and Medium Term: Maintain bear-ish for the pair. Next target 80

AUD/USD: The commodity currency is currently trading at 1.0073 levels. The commodity currency collapsed vs. the green-back amid risk aversion in the global market, decreasing demand for the higher yielding currency like AUD. Support is seen at around 0.9915 levels and strong resistance is seen at 1.0197 levels (100 and 200 days daily EMA). Exporters cover at cur-rent levels and importers cover below the parity levels. Short Term: Bearish Medium Term: Bearish. Target: 0.9700

Oil: Oil is currently trading at 98.87 levels. Oil rose strongly after the US data showed that the crude stockpile has dropped to the lowest in a decade. Support is seen at 97.31 levels (100 days daily EMA) while resistance is seen at around 100 levels. Outlook: Short term bearish and medium term bearish. Target 95 levels achieved. Next target: 95 levels again. Look at shorts at stiff resistances for medium term.

Gold: Gold is currently trading at 1625.79 levels. Gold dropped after stronger dollar on the board decreased demand for the precious metal as an hedge against uncertainties and inflation. Support is seen at around 1574.77 levels and resistance is seen at around 1680.92 levels (100 days daily EMA). As suggested earlier stay away from longs until we see significant cor-rections. Look at Initiating shorts at good resistances. Outlook stays bearish and target 1650 achieved. Next target 1500 levels. Look at shorts.

Dollar Index: DI is currently trading at 80.01 levels. The Dollar Index rebounded overnight on the back of risk aversion today after markets eventually concluded that the ECB decision to provide cheap liquidity to the banks will although provide some respite but it does not fundamentally address deep rooted EU debt problems. Sup-port is seen at 79.80 levels (55 days 4 hrly EMA) and resistance is seen at around 80.52s levels. Short term and Medium Term: Bullish. Target 81 almost achieved. Next target 83 levels


These views/ forecasts/ suggestions, though proffered with the best of intentions, are based on India Forex 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 mar-kets, 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