The dollar came under broad selling pressure, hitting a three-week low against the yen and euro and a seven-week low against the Australian dollar. The Euro jumped to around $1.3250, although market players attributed its strength to technical factors in light holiday trade. The euro has been under pressure due to concerns that more debt-soaked euro zone nations such as Portugal and Spain will be forced to join Greece and Ireland in needing a bailout to finance their burgeoning debt. The Aussie rose to $1.0082, its highest level since mid-November. The Yen also briefly rose to a three-week at 82.49 levels. The Sterling also stronger having posted highs of 1.5487 levels.
EUR/USD: The Euro rose against dollar and is currently trading at 1.3240 levels and it had touched low of 1.3112 levels yesterday. Immediate support comes at 1.3045 levels (21days Daily lower Bollinger) and next 1.2970, while resistance comes at 1.3335 levels (200 Daily EMA) and next 1.3370 levels (100 Daily EMA). EURINR (59.82) exporters cover near 60.00- 60.40 levels and importers cover for Dec at 59.50 or below levels. EUR/INR is likely to trade in the range of 59.70 - 60.00 today. Short term and Medium term: Bearish.
GBP/USD: The Pound is currently trading at 1.5483 levels and it had touched low of 1.5368 yesterday. Immediate resistance comes near 1.5585(21 Daily EMA) and next 1.5630 levels (200 Daily EMA), while support comes at 1.5280. GBPINR (69.93) Exporters hold for covers and importers cover for December and Jan (40%) at 69.50 levels or below. GBPINR is likely to trade in the range of 69.80 - 70.00 today. Short Term and Medium Term: Neutral to slight Bearish.
USD/JPY: USD/JPY is currently trading around immediate support levels of 82.50 Retail Sales y/y increased to 1.3% vs. -1.3% previously, Unemployment Rate remained stable at 5.1% while Tokyo Core CPI y/y was -0.4% as forecasted. Immediate strong resistance is at 83.20 (55 Daily 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 1.0072 levels. Immediate support comes at 0.9935 levels (21 Daily EMA) followed by 0.9840 levels (55 Daily EMA) while immediate resistance is at 1.0183 levels (High of 05.11.2010). 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 1390.85 levels. Overall the yellow metal had made a low of 1377.60 and a high of 1391.60 before closing at 1389.60. Immediate resistance is at $1410 levels followed by $1,431 levels while immediate support comes near $1370 levels. Buying on dips is recommended. Medium term: Maintain bullishness.
DOLLAR INDEX: Dollar Index is currently trading at 79.86 levels. Looking ahead today, CB Consumer Confidence forecasted 56.3 vs. 54.1 previously. There is a support at 79.20 levels and resistance is at 80.52 and next 81.50 levels. Holding above 80.50 would be quite bullish.
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.