Technical Outlook:

EUR/USD:  EUR is currently trading at 1.3524 levels. Euro weakened slightly vs. the US Dollar leading to flight to safety as in US the super committee approaches its 23rd Nov. deadline to find ways to cut $1.2 trillion in budget cuts for the next 10 years, political leaders are in a dead lock over the negotiation and it looks like the negotiation is close to failure. Support is seen at around 1.3439 levels and resistance is seen at around 1.3603 levels. EUR/INR is at 69.65 levels. Exporters and traders have already been suggested to 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 69.20 and 69.80 levels for today. EUR/INR has reached close to 70. Short Term: Bearish Medium Term Bearish. Target 70 and 1.3500 achieved. Exporters can look at partial covers.

GBP/USD: GBP is currently trading at 1.5759 levels. The cable is weak vs. the US Dollar amid risk aversion and it is also weak vs. the Euro as the focus shifts from Euro zone debt crisis to US budget cuts. Support is seen at around 1.5697 levels and strong resistance is seen at 1.5890 (21 and 55 days daily EMA). GBP/INR is at 81.08. GBP/INR is likely to trade in the range of 80.70 and 81.40 levels today. GBP/INR may not fall much due to weakening rupee. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 levels. Exporters can look at covers at current levels partially.

USD/JPY: Yen is currently trading at 76.80. Yen continue to rise slowly as yen bulls continue to inch higher amid weak global outlook and on fear of Japanese Intervention again. Support is seen at around 76.29 levels while strong resistance is seen at 77.18 (21 and 55 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 below parity at 0.9974 levels. Downside pressure continue on the commodity currency amid risk aversion as US congressional super committee may announce today it has failed to reach an agreement on at least $1.2 trillion in budget cuts, decreasing demand for higher-yielding assets. Support is seen at around 0.9908 levels and resistance is seen at 1.0187 levels (21 days daily EMA). Exporters have already been suggested to book covers at 1.0400 and now Importers can start covering below .9700-9800 levels. Short Term: Bearish Medium Term: Bearish. Target: 1.0 achieved.

Oil: Oil is currently trading at 97.75 levels. Oil dropped on speculation fuel demand is likely to falter amid signs of global weakness and due to debt crises in the US and Europe. Support is seen at 95.89 levels while resistance is seen at 99.02 levels (21 days 4 hrly EMA). 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 1723.60 levels. Gold continue to trade weak amid strong dollar on the board as Investors continue to prefer the US Dollar over the yellow metal. Support is seen at 1702.85 levels (100 days daily EMA) and resistance is seen at 1742.05 levels (21 days daily EMA). Stay away from longs until we see significant corrections. Look at Initiating shorts at good resistances. Outlook stays neutral in the range of 1700-1800 with slight bearish bias

Dollar Index: DI is currently trading at 78.06 levels. Flight to safety continues as Investors are stacking up more and more dollar and US Treasuries as the US congressional committee is likely to announce today that it failed to agree on deficit cuts. The deadline is of 23rd Nov.  in order to find ways to cut $1.2 trillion in budget cuts for the next 10 years, political leaders are in a dead lock over the negotiation on how to raise government revenues as Republicans refuse to increase taxes and Democrats are rejecting proposals to reduce funding to social programs like Social Security and Medicare. If a plan is not introduced by November 23rd, automatic cuts including lower allocations to defence and other major welfare programs will be enacted. The DI is in the strong uptrend and any dips must be seen as a good buying opportunity. Support is seen at 77.44 levels (21 days daily EMA) and resistance is seen at around 78.40 levels. Short term and Medium Term: Bullish. Target 79 again.

DISCLAIMER
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.