EUR/USD: EUR is currently trading at 1.3724 levels. Euro weakens vs. the greenback as European officials meeting yesterday in Frankfurt did not concrete solution. Meanwhile Greek Prime Minister is trying to implement new round of austerity measures which includes steps like tax rises, cuts to pensions and wages and plans to dismiss 30,000 state workers, so that he can convince other European officials that Greece will hold to its bailout program. Last night Greek PM managed to secure the support of all 154 of his lawmakers in the 300-seat parliament in a preliminary vote in Athens late yesterday, setting up a final vote on the bill today. Looking ahead German PPI m/m data is expected better. Support is seen at 1.3662 levels (21 days daily EMA) and resistance is seen at 1.3933 levels (100 days daily EMA). EUR/INR is at 67.79 levels. Exporters can cover short term exposure at current levels while Importers can cover exposure at 66.00 levels and below. EUR/INR is likely to trade in the range of 67.00 and 67.90 levels for today. Short Term: Bearish Medium Term Bearish. Target 1.3000 levels.
GBP/USD: GBP is currently trading at 1.5736 levels. The cable weakens vs. the greenback tracking weaker Euro and due to risk aversion in the market. Support is seen at 1.5666 levels (55 days daily EMA) and resistance is seen at around 1.5824. GBP/INR (77.76) Exporters can cover short term exposure at current levels and slightly higher while the short term importers can cover on dips towards 76.00 and below levels. GBP/INR is likely to trade in the range of 77.20 and 77.90 levels today. Maintain short term Bearish and Medium Term Bearish. Target 1.5100 levels.
USD/JPY: Yen is currently trading at 76.69 levels. Yen continues to trade sideways as threats of government intervention lingers as well as the currency is seen as a safe haven along with the US dollar in the time of uncertainties. Support is seen at around 76.13 levels while resistance is seen at 77.77 (100 days daily EMA). Yen exporters are suggested to book exposure 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 are possible.
AUD/USD: AUD is currently trading at 1.0186 levels. The commodity currency weakens vs. the US dollar amid risk aversion in the market as European officials are still struggling in drafting a plan to contain the debt crisis, decreasing demand for higher yielding assets. NAB Quarterly Business Confidence data came out weaker this morning. Support is seen at 1.0057 levels (21 days daily EMA) and strong resistance is seen at around 1.0292 levels (100 and 200 days daily EMA). Exporters have already been suggested to book export exposure at 1.0300-1.0400 levels and again should cover on any bounce towards 1.0200 levels and above while Importers can cover partially their near term exposure below parity and further on dips. Short Term: Bearish Medium Term: Bearish. Target 0.9700
Oil: Oil is currently trading at 85.73 levels. Oil fell on Investors concerns that faltering economy will falter crude demand. Support is seen at 84.59 levels (21 days daily EMA) while resistance is seen at 88.19 levels (100 days daily EMA). Outlook: Short term bearish and medium term bearish Target 80 levels.
Gold: Gold is currently trading at 1618.52 levels. Gold is falling heavily as strong dollar on the board continue to decrease its appeal as an alternate investment. Support is seen at 1603.04 (200 days daily EMA) and strong resistance is seen at 1672.94 levels (21 and 100 days daily EMA). As suggested at $1800 levels, gold is in consolidation phase. Stay away from longs until we see significant corrections. Gold is Bearish short term target 1500 dollars. Look at initiating shorts at good resistances.
Dollar Index: DI is currently trading at 77.06 levels. Dollar strengthens amid risk aversion in the global financial market as Investors continue to prefer safe havens in this uncertain environment. CPI m/m data came out neutral yesterday. Looking ahead Existing Home Sales data is expected weak. Support is seen at 76.62 levels (100 days daily EMA) and resistance is seen at 77.39 levels (21 days daily EMA). Short term and Medium Term: Bullish. Target is 80 soon.
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.