EUR/USD: EUR is currently trading at 1.3615 levels. Euro falls drastically vs. the US Dollar as Italy's borrowing costs increased at a five-year note sale yesterday and Spain's yields also increased. Credit-default swaps is also on the rise due to surging yields, increasing concerns among market participants that Euro zone debt crisis is worsening every passing day. Greek new Prime Minister told lawmakers that keeping the euro is the only way forward after German Chancellor Merkel's party voted to offer euro states a way to leave the Euro zone. Support is seen at around 1.3529 levels and resistance is seen at 1.3769 levels (21 days daily EMA). EUR/INR is at 68.90 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 68.70 and 69.30 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 1.5891 levels. The cable also collapsed drastically vs. the US Dollar amid strong risk aversion in the market as deepseated concerns about the Euro zone's huge debt crisis outweighed investor optimism over a new Italian government. Support is seen at around 1.5827 levels and strong resistance is seen at 1.5961 levels (21 and 100 days daily EMA). GBP/INR is at 80.34. GBP/INR is likely to trade in the range of 80.00 and 80.60 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 77.08. Yen rises slightly on prospect of weak global outlook although concerns remain on possible Japanese intervention if the currency continues to appreciate rapidly. Prelim GDP q/q figures came positive and in line with expectations at 1.5%. Support is seen at around 76.57 levels while resistance is seen at 77.59 (100 days daily EMA). 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 1.0199 levels. The commodity currency also weakened drastically as faltering global economy reduced demand for high yielding assets life AUD. Monetary policy minutes showed today that RBA decided to ease key interest rates after weighing slower inflation and increased global risks against surging mining investment .Support is seen at around 1.0107 levels and strong resistance is seen at around 1.0287 levels. 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 98.25 levels. Oil weakened on speculation Euro zone will struggle to contain its massive debt crisis. Support is seen at 96.03 levels (55 days 4 hrly EMA) while resistance is seen at around 100 levels. Outlook: Short term bullish and medium term bearish. Target 90 levels again. Look at shorts at stiff resistances for medium term.
Gold: Gold is currently trading at 1777.91 levels. Gold weakened slightly as Investors seems to prefer the US Dollar instead of preferring the yellow metal as it is highly overbought and a strong recession is also likely to hit the gold prices strongly. Support is seen at 1744.78 levels (100 days 4 hrly EMA) and resistance is seen at around 1792.31 levels. Stay away from longs until we see significant corrections. Look at initiating shorts at good resistances.
Dollar Index: DI is currently trading at 77.52 levels. Dollar is very strong on the board and it is the most preferred choice of Investors as growing concerns in the Euro zone continues to draw Investors towards US Dollars and US treasuries. The DI is in the strong uptrend and any dips must be seen as a good buying opportunity. Looking ahead Core Retail Sales m/m, PPI m/m and Retail Sales m/m and data is expected weak. Support is seen at 77.00 levels (21 days daily EMA) and resistance is seen at around 78.10 levels (21 days 4 hrly EMA). 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.