Technical Outlook:EUR/USD: Euro is currently trading at 1.4347 levels. Euro is positive on optimism that Greece will pass the austerity budget up for vote today/tomorrow. Trichet said that ECB is in strong vigilance mode and is taking decision progressively to anchor inflation expectations. The comment affirmed markets that ECB will raise the benchmark rate by 25bps on July 7. Support is seen around 1.4322 levels (55 days daily EMA) while resistance is seen at 1.4400 levels. EUR/INR (64.54): Exporters can cover short term exposure at 64.80levels while importers can cover on dips near 64.00 and below. EUR/INR is likely to trade in the range of 64.35-64.80 levels today. Short term: Bearish. Medium term: Bearish
GBP/USD: The Sterling is currently trading at 1.5989 levels. Sterling is slight positive even though annual Q1 GDP downgraded to 1.6% vs. 1.8% previously and continued bearish sentiment towards the BOE monetary policy. Support is seen at 1.5926 levels and resistance is seen at 1.6092 levels (200 days daily EMA). GBP/INR (71.91) Exporters can cover short term exposure near 72.40 levels while the importers can wait to hedge near 71.60 levels. GBP/INR is likely to trade in the range of 71.50-72.10 levels today. Short term: Bearish. Medium term: Bearish
AUD/USD: The Aussie is currently trading at 1.0532 levels. The Australian dollar rallied against most major currencies on the back of a rise in Asian stocks. Support is seen at 1.0485 levels (100 days daily EMA) and resistance is seen at 1.0562 levels (21 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 neutral
JPY: Yen is currently trading at 81.02 levels. Support is seen at 80.79levels (200 days 4hrly EMA) while resistance is seen at 81.43 levels (100 days daily EMA). Yen Exporters are suggested to book exposure below 80.00 and Importers can cover above 81.00 levels. Outlook: Short term to medium term: Maintain Bearish for the pair.
Gold: Gold is currently trading at 1503.40 levels. Gold Advances slightly as weak dollar Spurs Demand for yellow metal as a safe instrument for investment. Support is seen at 1488.63 (100 days daily EMA) while resistance is seen at 1513.33 levels (55 days daily EMA). Outlook: Medium term Bullish.
Oil: Oil is currently trading at 92.89 levels. Oil rallied strongly on speculation U.S. crude supplies data will come weak and steps by the Greek government to prevent a debt default will bolster Europe's economy. Support is seen around 91.85 levels (21 days 4hrly EMA) while resistance is seen at 93.22 levels (55 days 4 hrly EMA). Outlook: short term Bearish, Medium term neutral.
Dollar Index: DI is currently trading at 75.03 levels. Dollar Index moved slight weak as risk appetite on optimism that Greece austerity measures will get passed. Yesterday CB Consumer Confidence data came out weaker then expectation. Looking ahead Pending Home Sales m/m data is expected better. Support is seen at 74.85 levels (Trend line support) and resistance is seen at 75.70 levels (100 days daily EMA). Outlook remains Bullish for Short Term and Medium Term: Bullish (Post June - July).
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.