Technical Outlook:EUR/USD: Euro is currently trading at 1.4484 levels. Euro weakened against the dollar as Standard and Poor said the debt rollover plan for Greece may prompt a selective default rating for the country because such a plan would return creditors less value than originally promised. Looking ahead Retail Sales m/m data is expected weak. Support is seen at 1.4390 levels (21 days daily EMA) while resistance is seen at around 1.4566 levels. EUR/INR (64.45): Exporters can cover short term exposure at 64.60 levels while importers can cover on dips near 64.00 and below. EUR/INR is likely to trade in the range of 64.00-64.70 levels today. Short term: Bullish. Medium term: Bearish.GBP/USD: The Sterling is currently trading at 1.6048 levels. Sterling weakened against the dollar as risk appetite loses steam and as the weak fundamentals of UK continue to haunt the pound. Looking ahead Services PMI data is expected slight weak. Support is seen at around 1.5986 levels (55 days weekly EMA) and resistance is seen at 1.6091 levels (200 days daily EMA). GBP/INR(71.38). Exporters can cover short term exposure near 71.80 levels while the importers can wait to hedge near 71.00 levels and further dips. GBP/INR is likely to trade in the range of 71.10-71.60 levels today. Short term: Bearish. Medium term: Bearish.AUD/USD: The Aussie is currently trading at 1.0698 levels. Aussie weakened as risk sentiment loses steam even though trade Balance data came out better this morning. AIG Services Index data came out weaker this morning. Support is seen at 1.0626 levels (21 days daily EMA) and resistance is seen at around 1.0766 levels. Exporters are suggested to book exposure at current levels while Importers can cover partially their near term exposure at 1.0500 and further on dips. Short term: bullish. Medium term: neutral.USD/JPY: Yen is currently trading at 80.98 levels. Yen weakened vs. dollar as the Greenback gains strength across the board even though Average Cash Earnings y/y data came out better than expected this morning. Support is seen at 80.65 levels (21 days daily EMA) while resistance is seen at 81.36 levels (100 days daily EMA). Yen Exporters are suggested to book exposure below 80.00 and Importers can cover above 81.50 levels. Outlook: Short term to medium term: Maintain Bearish for the pair.Gold: Gold is currently trading at 1496.87 levels. Gold is slightly positive as some investors bought the metal on dips and as a weaker dollar spurred demand for an alternative safe heaven asset. Support is seen at 1489.53 (100 days daily EMA while resistance is seen at 1510.89 levels (55 days daily EMA). Outlook: Medium term Bullish.Oil: Oil is currently trading at 94.77 levels. Oil is slightly weak as investors speculate China will step up efforts to tame the growing inflation, tempering fuel demand. Support is seen at 94.52 levels (21 days 4hrly EMA) while resistance is seen at 95.68 levels (200 days daily EMA). Outlook: short term Bearish, Medium term neutral.Dollar Index: DI is currently trading at 74.24 levels. Risk Sentiment loses steam as dollar is strong across the board amid news regarding Standards and Poor quoting that the debt rollover plan for Greece may temporarily place the country in selective default because such a plan would return creditors less value than originally promised. Looking ahead Factory Orders m/m data is expected better today. Support is seen at 74.10 levels (Trend line Support) and resistance is seen at 74.70 levels (21 days daily EMA). Outlook remains neutral for Short Term and Medium Term: Bullish (Post July).

DISCLAIMER
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.