The Euro rose for a third straight day, supported by recent better-than-expected European economic data and Friday's release of European bank stress test results that seem to have relieved the worst fear without ruling out further problems in the banking sector. The EURUSD touched 1.3000 area yesterday but still unable to move consistently above that psychological/key level so far.The bias is rangebound though a clear break of 1.2700 this time should favour downside scenario. (EURUSD - 1.3000). Neutral

The GBP remained nervous above 1.5500 levels, further gains are likely but the Pound has failed to make straight-line gains ! in recent weeks so expect volatility. The GBPUSD was bullish y! esterday after touched high of 1.5520 , and closed at 1.5494 . Break of 1.50 would be bearish for the trend. Exporters may book at current levels. GBPUSD 1.5500

The JPY struggled to hold gains above 87.50 as the Dollar weakened broadly but found support under Y87. The market outlook is mixed with buoyant crosses being offset by weak USD/JPY technicals and expectations of an 85 test. USDJPY is currently trading at 86.96 levels. We have seen an up move due to increased risk appetite but still moving in a bearish bias. Target 90 again. Overall yen should remain range bound till a decisive break. (USDJPY 86.96) Neutral

The AUDUSD broke above the key 0.9000 level riding the recent rally in US stocks. Any type of news signifying downward growth concerns for the emerging economies like China would seriously weigh down the currency. AUD exporters can cover partially for Aug Immediate support at 0.8650 area. (AUDUSD - 0.9000). Neutral

Gold is curr! ently trading at 1184 levels and does not seem to be very bullish now. It is holding below its important moving averages of 55 day in daily charts. Most likely target could be 1110 dollars in case we see a closing below 1170 dollar . Please note that risk will remain heavily on the downside as 1266.5 resistance holds, and we'd expect another decline sooner or later. Sell on upticks is recommended only on break of 1170 dollars. (Gold- $1184) Neutral

The Dollar index's currently trading at 82.00 levels. The weekly close below 38.2% retracement of 74.19 to 88.70 at 83.15 will solidify this bearish case and bring deeper decline going forward towards 80.04 support, which is close to 80 psychological level as well as 61.8% retracement at 79.73. Incase we don't see 84.56 resistance breaking we have to look for further weakness in the index. (Dollar Index– 82.00) Neutral