Technical Outlook:

 EUR/USD: EUR is currently trading at 1.3288 levels. Euro rallied slightly after Fed chairman Ben Bernanke said that Fed is ready to support the economy if required, increased bets among the market participants that Fed can stimulate the economy with another around of quantitative easing although Moody's Investors service downgrade Italy's credit rating which added to concern Europe's debt crisis will worsen. Looking ahead Retail Sales m/m data is expected weak. Support is seen at around 1.3148 levels and resistance is seen at 1.3462 levels. EUR/INR is at 65.34 levels. Exporters can cover short term ex-posure at 65.60 while Importers can cover exposure at 64.00 levels and below. EUR/INR is likely to trade in the range of 64.90 and 65.70 levels for today. Short Term: Bearish Medium Term Bearish. Target 1.3300 levels achieved. EUR/INR should be in the range of 64.00-66 levels in the near term.

 

GBP/USD: GBP is currently trading at 1.5435 levels. GBP rallied a little as risk aversion dims slightly amid Fed chairman's speech yesterday. Support is seen at around 1.5353 levels and resistance is seen at 1.5555 levels (55 days daily EMA).UK's Construction PMI data came out weaker yesterday. Looking ahead Final GDP q/q data is expected neutral. GBP/INR (75.87) Exporters can cover short term exposure at current levels and slightly higher while the short term importers can cover on dips towards 75 and below levels. GBP/INR is likely to trade in the range of 75.40 and 76.20 levels today. Maintain short term Bearish and Medium Term Bearish. Target 1.5400 achieved.

 

USD/JPY: Yen is currently trading at 76.67 levels. Support is seen at around 75.90 levels while resistance is seen at 77.20 levels (55 days daily EMA). Yen exporters are suggested to book exposure partially at current levels and Importers can cover above 78.00 levels. Outlook: Short Term slight Bullish and Medium Term: Maintain bearish for the pair. USD/JPY pair should range in 76-78 levels. Bounce back till 80 levels is possible. Yen exporters should cover at current levels.

 

AUD/USD: AUD is currently trading at 0.9532 levels. The commodity currency saw a slight relief rally overnight amid slight risk sentiment in the market although the downward pressure exists amid global uncertainties and as RBA left the interest rates unchanged yesterday and opened the door with its statement for interest rate cuts in the near future. Support is seen at around 0.9337 levels and resistance is seen at 0.9721 levels (100 days weekly EMA). Exporters have already been sug-gested to book export exposure at 1.0300-1.0400 levels and again should cover on any bounce towards .9900 levels while Importers can cover partially their near term exposure at current levels and further on dips. Short Term: Bearish Medium Term: Bearish. Target 0.9600 achieved. Next target .9300.

 

Oil: Oil is currently trading at 77.80 levels. Oil rebounded slightly today down after the Fed chairman's Ben Bernanke speech yesterday of further monetary support to the economy if required. Support is seen at around 75.54 levels while resistance is seen at 80.71 levels (55 days 4hrly EMA). Outlook Short term bearish and medium term bearish Target 80 levels achieved. Next target 76 levels.

 

Gold: Gold is currently trading at 1628.78 levels. Gold is currently under selling pressure as Fed speech yesterday increased risk sentiment and decreased demands for alternative safe haven like gold. Support is seen at 1594.58 levels (200 days daily EMA) and resistance is seen at 1682.37 levels (100 days daily EMA). As suggested at 1800 dollars gold is in consolidation phase. Stay away from longs until we see significant corrections. Gold is Bearish short term target 1500 dollars.

 

Dollar Index: DI is currently trading at 79.09 levels. Risk aversion fades slightly today as Fed chairman Ben Bernanke said yesterday that Fed is ready to support the economy if required, increased bets among the market participants that Fed can stimulate the economy with another around of quantitative easing. Looking ahead ADP Non-Farm Employment Change data and ISM Non-Manufacturing PMI data is expected weak. Support is seen at around 78.70 levels and resistance is seen at around 79.82 levels. Outlook remains slight bullish for Short term and Medium Term: Bullish. Target is 80 soon.

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.