Technical Outlook:

EUR/USD: Euro is currently trading at 1.4254 levels. Euro recovered most of its loses from yesterdays selling as IMF/EU had agreed to a 5 year austerity plan on measures proposed by the Greek government. Looking ahead German Ifo Business Climate data is expected weak. Support is seen around 1.4225 levels (100 days daily EMA) while resistance is seen at 1.4355 levels (55 days daily EMA). EUR/INR (64.09): Exporters can cover 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 63.85-64.22 levels today. Short term: Bearish. Medium term: BearishGBP/USD: The Sterling is currently trading at 1.6043 levels. The pound continued to fall drastically yesterday even below the psychological support of 1.6000 but recovered overnight after getting supported by the positive Euro. Support is seen at 1.5981 levels (55 days weekly EMA) and resistance is seen at 1.6097 levels (200 days daily EMA). GBP/INR (72.01) Exporters can cover short term exposure near 73.00 levels while the importers can look to hedge near 71.50 levels. GBP/INR is likely to trade in the range of 71.80-72.28 levels today. Short term: Bearish. Medium term: BearishAUD/USD: The Aussie is currently trading at 1.0525 levels. The Aussie is positive on optimism Greece will pass the necessary budget cuts by the next week needed to receive additional aid, boosting demand for higher-yielding assets. Support is seen at 1.0422 levels (21 days weekly EMA) and resistance is seen at 1.0589 levels (55 days daily EMA). Exporters are suggested to book exposure around 1.0650 levels while Importers can hold cover partially their near term exposure at 1.0200-1.0300 and further on dips. Short term: bearish. Medium term: Maintain neutralUSD/JPY: Yen is currently trading at 80.47 levels after making the high of 80.81. CSPI y/y data came out weaker this morning at -0.9% vs. the expectation of -0.7%. Strong Support is seen at 80.38 levels (21 and 55 days 4hrly EMA) while resistance is seen at 81.00 levels (55 days daily EMA). Yen Exporters are suggested to book exposure below 80.00 and Importers can cover above 82.50 levels. Outlook: Short term to medium term: Maintain Bearish for the pair.Gold: Gold is currently trading at 1522.07 levels. Gold collapsed heavily as a rising dollar eroded the appeal of precious commodities as an investment and eased the risk of accelerating inflation. Support is seen at 1515.25 (55 days daily EMA) while resistance is seen at 1532.65 levels (21 days daily EMA). Outlook: Medium term Bullish.Oil: Oil is currently trading at 92.05 after making a low of 89.70 levels. Oil fell on the news that IEA would release an extra 60 million barrels of Oil onto the market to help counter disruptions from Libyan conflict. Support is seen around 91.60 levels (55 days weekly EMA) while resistance is seen at 95.89 levels (200 days daily EMA). Outlook: short term slight Bearish, Medium term Bullish.Dollar Index: DI is currently trading at 75.21 levels. Dollar is weak across the board as risk sentiment takes hold of the market as the EU and IMF endorsed the Greece austerity measure. Yesterday Unemployment data came out weaker and New Home Sales data came out better then expectation. Looking ahead Core Durable Goods Orders m/m, Durable Goods Orders m/m and Final GDP q/q data is expected better. Support is seen at 75.03 levels (55 days daily EMA) and resistance is seen at 75.72 levels (100 days daily EMA). Outlook remains Bullish for Short Term and Medium Term: Bullish (Post July). 


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