The US Dollar continues to decline, after jobless claims report from US was mixed. Weekly Jobless Claims fell below 400k to 388k. Swiss Franc continues to be strong on safe-haven demand and reaches new record high against Dollar, it shows still risk aversion in the world. Aussie is, also, another strong currency recently as supported by strength in commodity prices. Japan and USA are on holiday today expecting thin range trading in major currencies. The Euro gains against dollar highs above 1.3300 levels. The Yen was range in a 40 pips and traded at 81.48 levels.
EUR/USD: The Euro is currently trading at 1.3294 levels and it had touched low of 1.3287 levels and high of 1.3314 levels yesterday. Immediate support comes at 1.3055 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 (59.62) exporters hold for covers and importers cover for Jan at around 59.30 or below levels. EUR/INR is likely to trade in the range of 59.45 - 59.75 today. Short term and Medium term: Bearish.
GBP/USD: The Pound is currently trading at 1.5436 levels and it had touched low of 1.5365 levels yesterday after the news flashed that U.K. home prices will fall next year due to mortgage restrictions and government spending cuts which discouraged buyers. Looking ahead today, Nationwide HPI m/m forecasted at -0.2% vs. -0.3% previous. Immediate resistance comes near 1.5550(21 Daily EMA) and next 1.5620 levels (200 Daily EMA), while support comes at 1.5280. GBPINR (69.23) Exporters hold for covers and importers cover for Jan at 69.10 levels or below. GBPINR is likely to trade in the range of 69.10 - 69.40 levels today. Short Term and Medium Term: Neutral to slight Bearish.
USD/JPY: USD/JPY is currently trading at 81.49 levels. Overall it had traded with a low of 81.38 and a high of 81.86 yesterday. Immediate strong resistance is at 81.95 levels (21 H4 EMA) followed by 82.60 (55 H4 EMA). Yen Exporters are suggested to book Jan and Feb month's exposure around 81 levels and Yen Importers can cover their exposure near 84 levels. Medium Term: Maintain Bearishness for the pair.
AUD/USD: The Aussie is currently trading at 1.0158 levels. Aussie had lost some strength after China manufacturing PMI showed slowdown. Private Sector Credit m/m came at 0.3% vs. 0.1% previous. Overall it had made a low of 1.0117 and a high of 1.0186 yesterday. Immediate support comes at 0.9990 levels (21 Daily EMA) followed by 0.9880 levels (55 Daily EMA) while immediate resistance is at 1.0198 levels (High of 29.12.2010). Exporters are suggested to book Jan and Feb month's exposure at around 1.0200 levels, and Importers can cover their exposure on dips. Medium term: Bullish.
Gold: Gold is currently trading at 1406.65 levels. Overall the yellow metal had made a low of 1402.15 and a high of 1414.80. Immediate resistance is at $1,431 levels while immediate support comes near $1400 followed by $1370 levels. Buying on dips is recommended. Medium term: Maintain bullishness.
DOLLAR INDEX: Dollar Index is currently trading at 79.48 levels after positive U.S. economic data. U.S. weekly jobless claims fell to the lowest levels of 388K since July 2008 vs. 422K previously. Chicago PMI jumped to 68.6 (highest level in 22 years) beating forecasts of 61.2. November pending home sales unexpectedly rose by +3.5% m/m. There is a support at 78.83 levels followed by 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.