Technical Outlook:

EUR/USD: EUR is currently trading at 1.3115 levels. Euro rallied strongly vs. the dollar and it also gained grounds vs. the cable after a German Ifo business-confidence report came out better than expected indicating improving business conditions.  Yesterday Spanish bond auction also witnessed short-term Spanish borrowing costs plunged amid strong demand. Better than expected US Building Permits and ECB decision to provide cheap loans to EU banks also helped in spurring risk sentiment.   Support is seen at 1.3055 levels (21 days 4 hrly EMA) and resistance is seen at 1.3241 levels (21 days daily EMA). EUR/INR is at 69.09 levels. EUR/INR is likely to trade in the range of 69.75 and 69.30levels for today. Short Term: Bearish Medium Term Bearish Target 1.25. Exporters have already been asked to cover at 70 plus levels. Short Term: Bearish Medium Term Bearish Target 1.30 achieved next target 1.25

GBP/USD: GBP is currently trading at 1.5673levels. The cable is strong vs. the dollar but loses vs. the Euro amid risk sentiment in the market as concerned eased slightly regarding the Euro zone debt crisis after better than expected German Ifo business confidence report. Looking ahead MPC Meeting Minutes is likely to show all the members is likely to be in favour of keep interest rates remain unchanged and Public Sector Net Borrowing data is likely to surface weak. Support is seen at 1.5620 levels (21 days daily EMA) and resistance is seen at 1.5722 levels (55 days daily EMA). GBP/INR is at 82.54. GBP/INR is likely to trade in the range of 82.25 and 82.60 levels today. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 achieved. Next target 1.50.

USD/JPY: Yen is currently trading at 77.82 levels. Support is seen at 77.52 levels (55 days daily EMA) while resistance is seen at around 78.16 levels. Outlook: Short Term slight Bullish and Medium Term: Maintain bearish for the pair. Next target 80

AUD/USD: The commodity currency is currently trading at 1.0115 levels. The commodity currency is trading positive after better than expected MI Leading Index m/m data this morning and amid positive risk sentiment in the market. Support is seen at around parity levels and strong resistance is seen at 1.0202 levels (100 and 200 days daily EMA). Exporters can cover at 1.0300 levels and importers have already been suggested to cover below the parity levels. Short Term: Bearish Medium Term: Bearish. Target: 0.9700

Oil: Oil is currently trading at 97.95 levels. Oil rose strongly as investors speculate that signs of an economic recovery in US and Euro zone and shrinking stockpiles in the US indicate fuel demand may increase. Support is seen at 95.06 levels (55 days daily EMA) while resistance is seen at around 99.78 levels (55 days daily EMA). Outlook: Short term bearish and medium term bearish. Target 95 levels achieved. Next target: 95 levels again. Look at shorts at stiff resistances for medium term.

Gold: Gold is currently trading at 1625.79 levels. Gold rallied as weak dollar on the board today increased the precious metal shine. Support is seen at 1574 levels and resistance is seen at around 1683.36 levels (100 days daily EMA). As suggested earlier stay away from longs until we see significant corrections. Look at Initiating shorts at good resistances. Outlook stays bearish and target 1650 achieved. Next target 1500 levels. Look at shorts.

Dollar Index: DI is currently trading at 79.81 levels. The Dollar Index is trading weak on the back of risk sentiment today after better than expected US Building Permits and Eur German Ifo business-confidence data. Looking ahead Existing Home Sales data is expected better today. Support is seen at 79.31 levels (200 days weekly EMA) and resistance is seen at around 80.54 levels. Short term and Medium Term: Bullish. Target 81 almost achieved. Next target 83 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.