India Forex Advisors / Market Commentary /31_May_2011

By @ibtimes on

Technical Outlook:

EUR/USD: Euro is currently trading positive at 1.4383 levels. The euro climbed against most of its major peers on speculation European nations will pledge more funds to repair Greece's finances. Looking ahead German Retail Sales m/m data and French Consumer Spending m/m data is expected better and Unemployment Rate data is expected neutral. Strong support is seen at 1.4298 levels (200 days 4 hourly EMA) while resistance is seen at 1.4420 levels. EUR/INR (64.68): Exporters can cover partially short term exposure at 65.00 levels while importers can cover on dips towards 63.50 levels. EUR/INR is likely to trade in the range of 64.55-64.84 levels today. Short Term: Neutral to bearish, Medium term: Slight bearish.

GBP/USD: The Sterling is currently trading at 1.6540 levels. Sterling continues its rally against the dollar as risk sentiment takes hold of the market in spite of weak UK outlook. GBP/INR (74.42) Exporters can cover short term exposure at current levels 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 74.30-74.62 levels today. Short Term: Neutral to bearish. Medium term: Slight bearish.

USD/JPY: The Yen is currently trading at 81.23 levels. The Yen is trading weaker against the dollar on account of weak Japan's data this morning. Household Spending y/y data came out weaker at -3.0% vs. the expectation of -2.7% and Prelim Industrial Production m/m data also came out weaker at 1.0% vs. the expectation of 2.6% Support is seen at 80.34 levels while resistance is seen at 81.72 levels (55 days daily EMA). Yen Exporters are suggested to book exposure at 80.70 and Yen Importers can cover very partially at 83.50 plus levels. Short term to medium term: Maintain Bullishness for the pair.

AUD/USD: Australian Dollar is currently trading at 1.0731 levels. The Aussie is gained against the dollar by positive rally in gold and risk sentiment in the market. This morning Building Approvals m/m data came out better than expected but Current Account data and Private Sector Credit m/m data came out weaker than expected. Support is seen at 1.0650 levels (21 days daily EMA) and resistance is seen near 1.0777 levels. Exporters are suggested to book exposure around 1.0850 levels while Importers can cover partially their near term exposure at 1.0600 and further on dips. Short Term: Neutral to slight bearish. Medium term: Maintain Bullishness

.Gold: The Gold is currently trading at 1535.91 levels. Gold held steady after rising to its highest level in more than three weeks in the previous session, with investors still focusing on Greek bailout uncertainty. Support is seen at 1516.17 levels (21 days daily EMA) while resistance is seen at 1550 levels (psychological resistance). Outlook: Medium term Bullish.

Oil: Oil is currently trading at 101.29 levels. Oil rose with assurance of the European zone regarding a bailout of Greece in the month of June. Strong support is seen at 95.54 levels (200 days daily EMA) while resistance is seen at 102.71 levels (55 days daily EMA). Outlook: Medium term Bullish.

Dollar Index: DI is currently trading at 74.90 levels. The dollar fell as risk sentiment take hold of the market on accounts of positive speculation that European nations will pledge more funds to repair Greece's finances and on continuous weak data from US front in recent days. Support is seen at 74.74 levels and strong resistance is seen at 75.15 levels (100 and 200 days 4 hourly EMA). Outlook remains Neutral to slightly Bullish for Short Term and Medium Term: Bullish (Post July). 

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