EUR/USD: EUR is currently trading at 1.3544 levels. Euro recovered slightly vs. the US dollar and the cable after Standard & Poor's clarified that France's credit rating will remain AAA, boosting sentiment that Euro zone will recover from its debt crisis. Yesterday better than expected Italy's bond auction and better than expected US Unemployment Rate and Trade Balance data yesterday also helped in increasing confidence among the market participants. Support is seen at around 1.3526 levels and resistance is seen at around 1.3695 levels. . EUR/INR is at 68.27 levels. Exporters can cover short to medium term exposure between 1.37-1.40 levels in EUR/USD leg only while Importers can cover exposure at 66.50 levels and below. EUR/INR is likely to trade in the range of 68.00 and 68.60 levels for today. EUR/INR could move to 70 again. Short Term: Bearish Medium Term Bearish. Target 1.3500 levels almost achieved.
GBP/USD: GBP is currently trading at 1.5936 levels. The cable is positive vs. the US Dollar amid risk sentiment in the market although the cable weakened vs. the Euro as concerns eases on the Euro zone debt crisis after S&P confirms France AAA rating. Yesterday as expected UK's Asset Purchase Facility and Key Interest rate remained unchanged at 275B and 0.50% respectively. Support is seen at around 1.5869 levels and resistance is seen at 1.5989 levels (55 days 4 hrly EMA). GBP/INR is at 79.76. GBP/INR is likely to trade in the range of 79.20 and 80.00 levels today. GBP/INR may not fall much due to weakening rupee. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 levels.
USD/JPY: Yen is currently trading at 77.53. Yen rises as weak global outlook and continuing Euro zone debt crisis continue to attract Investors towards this alternative safe haven. Tertiary Industry Activity m/m data came out weaker than expected this morning. Support is seen at 77.22 levels (55 days daily EMA) levels while resistance is seen at 77.75 (21 days 4 hrly EMA). Yen exporters have already been suggested to book exposure around 76 levels and Importers suggested covering at around 79 plus levels. Outlook: Short Term slight Bearish and Medium Term: Maintain bearish for the pair. Next target 76 again.
AUD/USD: The commodity currency is currently trading at 1.0157 levels. The Australian dollar is slight positive vs. the greenback amid slight risk sentiment in the market, increasing demand for higher yielding assets like AUD but the sentiment remains weak due to expectation of rate cuts. Support is seen at parity and resistance is seen at around 1.0276 levels (55 days daily EMA). Exporters have already been suggested to book covers at 1.0400 and now Importers can cover towards the parity level or below. Short Term: Bearish Medium Term: Bearish. Target: 1.0 soon
Oil: Oil is currently trading at 98.07 levels. Oil is in an uptrend as Greece announced Lucas Papademos as the officiating PM and positive economic data from the US like good jobless data and better trade deficit. A lot of volatility can be seen in oil though. Support is seen at 96.45 levels (21 days 4 hrly EMA) while resistance is seen at around 100 levels. Outlook: Short term bearish and medium term bearish Target 90 levels again. Look at shorts at stiff resistances for medium term.
Gold: Gold is currently trading at 1767.50 levels. Gold is inching downwards amongst some confidence build up on encouraging signs from Italy to avert a disaster. But it is unlikely to go down substantially till clear positive signs are noticed in Europe. Support is seen at 1732.79 levels (21 days daily EMA) and resistance is seen at around 1792.62 levels. Stay away from longs until we see significant corrections. Look at initiating shorts at good resistances.
Dollar Index: DI is currently trading at 77.64 levels. Dollar saw some intraday correction on positive sentiments from Italy. The DI is still expected to trade at these high levels with an upward bias. The DI would be expected to trade at such high levels unless more clarity is brought about to the whole Europe problem. Yesterday US Unemployment Data and Trade Balance data came out better than expected. Support is seen at around 77.44 levels and resistance is seen at around 78.08 levels. Short term and Medium Term: Bullish. Target 79 again.
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.