EUR/USD: Euro is currently trading positive at 1.4161 levels. The euro rallied vs. the dollar and yen on speculation that China will purchase European bonds even as Greece's debt crisis threatens the region's economic recovery. Yesterday GFK German Consumer Climate data came out weaker at 5.5 vs. 5.7 previously. Looking ahead German Import Prices m/m is expected weaker. Support is seen at 1.4098 levels (21 days 4 hourly EMA) while strong resistance is seen at 1.4266 (21days daily EMA). EUR/INR (64.06) Exporters can cover partially short term exposure at current levels while importers can cover on dips towards 63.25 levels. EUR/INR is likely to trade in the range of 63.78-64.25 levels today. Short Term: Neutral to bearish, Medium term: Slight bearish.
GBP/USD: The Sterling is currently trading at 1.6313 levels. The pound strengthened against the dollar as a report showed U.K. exports helped the economy resume growth in the first quarter. Strong support is seen at 1.6288 levels (21 and 55 days daily EMA) while resistance is seen at 1.6381levels. GBP/INR (73.68) Exporters can cover May exposure from 74.00 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 73.55-73.88 levels today. Short Term: Neutral to bearish. Medium term: Slight bearish.
USD/JPY: JPY is currently trading at 81.88 levels. Growing debt burden and an aging population are the structural concerns with the country. The Bank of Japan has responded to these by loosening the monetary policy to give stimulus to the economy. Support is seen at 81.45 levels (21 days daily EMA) while resistance is seen at 82.15 levels (100 days daily EMA). Short term to medium term: Maintain Bullishness for the pair.
AUD/USD: Australian Dollar is currently trading at 1.0582 levels. The Aussies is positive vs. the dollar after a government report showed business investment increased more than economists' forecast. Private Capital Expenditure q/q data came out better this morning. Support is seen at 1.0549 levels (21 days 4hrly EMA) and strong resistance is seen near 1.0597 levels (55 and 200 days 4hrly EMA). Exporters are suggested to book exposure around 1.0700 levels while Importers can cover partially their near term exposure at current levels. Short Term: Neutral to slight bearish. Medium term: Maintain Bullishness.
Gold: Gold is currently trading at 1527 levels. Gold edged up to near its strongest level in three weeks on concern over sovereign debt problems. Support is seen at 1508.09 levels (21 days daily EMA) while resistance is seen at 1542.92. Outlook: Medium term Bullish.
Oil: Oil is currently trading at 101.55 levels. Crude Oil rises to highest in two weeks after U.S. inventories of diesel and heating oil tumbled to the lowest level. Crude oil was firmer by around +1.74% despite higher than expected US weekly inventory data that showed a surprising rise of 616K barrels. Strong support is seen at 95.27 levels (200 days daily EMA) while resistance is seen at 103.02 levels (55 days daily EMA). Outlook: Medium term Bullish.
Dollar Index: Dollar Index is currently trading at 75.94 levels. Dollar fell against Euro on speculative news that China will purchase European bonds. U.S. Core durable goods orders for April came weaker at -1.5% vs. expected of +0.7%. Looking ahead Unemployment Claims and Prelim GDP q/q is expected better. Support is seen at 75.41 levels (55 days daily EMA) while resistance is seen near 76.27 levels (100 days daily EMA). Outlook remains Neutral to Bullish for Short Term and Medium Term: Bullish (Post July).