EUR/USD: Euro is currently trading at 1.4113 levels. Euro collapsed vs. the dollar as there was no supportive news to lure investors in taking the long position in Euro and more selling pressure was added as the key interest rates were left unchanged yesterday, even though ECB president has given a statement late evening that ECB has resumed bond purchases and will provide more liquidity to stop the debt crisis from spreading. Support is seen at 1.4077 levels (200 days daily EMA) while resistance is seen at 1.4262 levels (100 days daily EMA). EUR/INR (63.12): Exporters can cover short term exposure at 63.50 levels while importers can cover short term exposure at 62.80 and below. EUR/INR is likely to trade in the range of 62.75 -63.50 levels today. Short term: Bearish. Medium term: Bearish. Target 1.3800 - 1.4000 levels.
GBP/USD: Sterling is currently trading at 1.6275 levels. Sterling collapsed vs. the dollar on the back of strong risk aversion in the market and weak UK fundamentals. As expected key interest rate were left unchanged yesterday. Asset Purchase Facility data came out neutral as expected. Support is seen at 1.6209 levels (100 days daily EMA) and resistance is seen at around 1.6325 levels (21 days 4 hourly EMA). GBP/INR (72.83) Exporters can cover short term exposure at 73.00 while the importers can cover on dips. GBP/INR is likely to trade in the range of 72.10 - 72.90 levels today. Short term: Bearish. Medium term: Bearish. Target - 1.5800 levels
AUD/USD: The Aussie collapsed heavily falling by more than 500 pips in the last 4 days and is currently trading at 1.0482 levels. The commodity currency continues its decline vs. the Greenback as speculation that Australian economic growth is slowing thus decreasing demand for the highyielding Australian dollars. Support is seen at 1.0373 levels (200 days daily EMA) and resistance is seen at 1.0629 levels (100 days daily EMA). Exporters are suggested to book exposure near 1.0500 while Importers can partially cover their near term exposure at current levels and further on dips. Short term: bearish. Medium term: bearish. Target 1.0500 achieved
USD/JPY: Yen is currently trading at 79.09 levels. The yen is holding weak versus the greenback following the intervention in the forex market and overnight announcement from BOJ to increases asset purchases. Support is seen at 78.01levels (55 days 4 hourly EMA) while resistance is seen at 79.09 levels (200 days 4 hourly EMA). Yen Exporters are suggested to book exposure at 77.75 levels and Importers can cover above 80.00 levels. Outlook: Short term to medium term: Maintain bearish for the pair. Target 76 levels again.
Oil: Oil is currently trading at 85.95 levels after collapsing drastically over night from the yesterday high of 92.25 levels. Oil continues its collapse in recent days on speculation that weakening global economy will result in a reduction in the fuel demand. Support is seen at around 84.97 levels while resistance is seen at around 88.77 levels. Outlook: Short term bearish and medium term bearish. Target 90 achieved.
Gold: Gold is currently trading at 1654.58 after falling from the all time high of 1682.14 levels. Gold is trading in red along with other riskier assets as strong risk aversion is seen in the market. Support is seen at 1633.53 levels (23.6% retracement in daily Fibonacci) while resistance is seen at around 1670.45 levels. Outlook: Medium term Bullish. Targeting 1675 levels.
Dollar Index: DI is currently trading at 75.28 levels. Dollar is bullish as strong risk aversion is witnessed in the global market leading to correction in riskier assets on the back of global weakness and recent increase in the US debt ceiling. Support is seen at 74.75 levels (55 days daily EMA) and Resistance is seen at around 75.90 levels. 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.