India Forex Advisors / Market Commentary /23_Dec_2010

By @ibtimes on

Dear Reader,

Global Markets:

The Dollar gave up small gains after a report showing sales of existing homes in the U.S. rose less than expected and Q3 GDP came in at 2.6%, below expectations for a bigger upward revision to 2.8%. The euro last traded at $1.3110, its decline once again stalling at around $1.3077. Portuguese press speculation that China was preparing to buy 4-5bn Euros of Portuguese debt. The Yen strengthen against the major but the losses were contained with support found at Y83.50. The GBP was weighed by an unexpected downward revision to Q3 GDP and was broadly linked with the Euro. Against the greenback, the Aussie tested parity and trading at at $1.0017 as AUD remained the top choice for risk taking investors to optimism about the global economy, which has supported commodity prices and global stocks. The kiwi dollar fell below $0.7400 in immediate response to the data showing a 0.2 percent decline in GDP.

Technical Highlights:

EUR/USD: The Euro is currently trading at 1.3118 levels and it touched low of 1.3077 levels yesterday. Immediate support comes at 1.3055 levels (21days Daily lower Bollinger) and next 1.2970, while resistance comes at 1.3220 levels & next 1.3400 levels. EURINR (59.00) exporters cover near 60.00- 60.40 levels and importers cover for Dec at current levels. EUR/INR is likely to trade in the range of 58.90 - 59.20 today. Short term and Medium term: Bearish.

GBP/USD: The Pound is currently trading at 1.5415 levels and it touched low of 1.5351 after the GDP data released weak. Immediate resistance comes near 1.5480 and next 1.5636 levels (200 Days daily EMA), while support comes at 1.5280. GBPINR (69.37) Exporters hold for cover and importers cover for Dec (80%) and Jan (40%) at current levels. GBPINR is likely to trade in the range of 69.25 - 69.50 today. Short Term and Medium Term: Neutral to slight Bearish

USD/JPY: USD/JPY is currently trading at 83.12 levels. Immediate Support is at 82.70 while immediate strong resistance is at 84.20 levels (21 Weekly EMA). Yen Exporters are suggested to book Dec and Jan month's exposure on dips and Yen Importers can cover their exposure above 84 levels. Medium Term: Maintain Bearishness for the pair

AUD/USD: The Aussie is currently trading above the parity levels at 1.0013 levels. It had crossed the parity levels yesterday after opening at 0.9972 levels. Immediate support comes at 0.9870 levels (21 Daily EMA) While immediate resistance is at 1.0080 levels. Exporters are suggested to book Dec and Jan month's exposure above 1.0050 levels, and Importers can cover their exposure on dips. Medium term: Bullish

Gold: Gold is currently trading at 1387 levels. Overall gold traded yesterday with a low of $1382 and high of $1391. Immediate resistance is at $1410 levels followed by $1,431 levels while immediate support comes near $1365 levels. Buying on dips is recommended. Medium
term: Maintain bullishness.

DOLLAR INDEX: Dollar Index is currently trading near the resistance level of 80.50 levels.
Final GDP q/q came at 2.6% vs. 2.5% previously, Existing Home Sales at 4.68M vs. 4.72M expected. Looking ahead today, Unemployment Claims, Consumer confidence and new home sales data are due. There is a support at 79.20 levels and resistance is at 80.52 and next 81.50 levels.

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.

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