EUR/USD: Euro is currently trading at 1.4326 levels. The euro weakened against the dollar as Euro zone debt issues continue to haunt investors. Yesterday German Unemployment Change data came out weaker than expected. Looking ahead German Retail Sales m/m, French Consumer Spending m/m and Net Lending to Individuals m/m data is expected better today. Strong Support is seen at 1.4311 levels (21 and 55 days daily EMA) while resistance is seen at 1.4366 levels (21 days 4 hourly EMA). EUR/INR (63.27): Exporters can cover short term exposure at 64.00 levels while importers can cover short term exposure at 62.50 and below. EUR/INR is likely to trade in the range of 63.05-63.58 levels today. Short term: Bearish. Medium term: Bearish. For Euro target 1.3800-1.4000 levels.
GBP/USD: Sterling is currently trading at 1.6348 levels. The pound gained amid concern that the U.S. and Euro zone nations will struggle to contain their debt burdens, increasing the relative appeal of British pound. Yesterday CBI Realized Sales data came out weaker than expected. Today GFK Consumer Confidence data came out weaker than expected and Net Lending to Individuals m/m data is expected neutral. Support is seen at 1.6221 levels (21 days daily EMA) and resistance is seen at around 1.6427 levels. GBP/INR (72.14): Exporters can cover short term exposure at current levels while the importers can wait to hedge near 71.20 levels. GBP/INR is likely to trade in the range of 71.85-72.35 levels today. Short term: Bearish. Medium term: Bearish. Target- 1.5800 levels
AUD/USD: The Aussie is currently trading at 1.0979 levels after falling below the 1.1000 levels overnight. The commodity currency fell as Private Sector Credit m/m data came out weaker this morning and as the US further delayed a vote on a debt ceiling plan. Support is seen at around 1.0859 levels and resistance is seen at around 1.1000 levels. Exporters are suggested to book exposure at current levels and above while Importers can partially cover their near term exposure at 1.0700 levels. Short term: bullish. Medium term: bearish. For the AUD target 1.0500-1.0700 levels.
USD/JPY: Yen is currently trading at 77.56 levels. The yen is positive and it is close to its postwar record against the dollar as Asian share market are trading in red and US lawmakers are deadlock on a plan to raise the debt limit to avert a default. Support is seen at 77.00 levels while resistance is seen at 77.93 levels (21 days 4hrly EMA). Yen Exporters are suggested to book exposure at current levels and Importers can cover above 80.00 levels. Outlook: Short term to medium term: Maintain bearish for the pair. Yen now targeting 76 levels
Oil: Oil is currently trading at 97.15. Oil continued to fall on Euro zone debt issues and US debt ceiling concerns. Support is seen at 96.05 levels (200 days daily EMA) while resistance is seen at 97.79 levels (55 days daily EMA). Outlook: Short term bullish and medium term bearish
Gold: Gold is currently trading at 1615.80 levels. Gold is quite steady as investors wait for further cues from the Washington negotiations regarding raising the US debt-ceiling. Support is seen at 1613.92 levels (21 days 4hrly EMA) while resistance is seen at 1630 levels. Outlook: Medium term Bullish target 1650.
Dollar Index: DI is currently trading at 74.14 levels. Dollar recovered slightly after Unemployment Claims data and Pending Home Sales m/m data came out better than expected yesterday increasing confidence among investors on the reliability of the dollar as the safe haven. Looking ahead Advance GDP q/q data and Chicago PMI is expected. Support is seen at around 73.50 levels and Resistance is seen at 74.55 levels (21 days daily EMA). Outlook remains Slight bullish for Short Term and Medium Term: Bullish Target 76 levels.
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.