EUR/USD: EUR is currently trading at 1.3317 levels. Euro rebounded vs. the US Dollar amid risk appetite in the global market on news that EU officials are considering increasing the fire power of European Financial Stability Facility in order to contain the ongoing debt crisis. The proposal under consideration by EU officials is to insure buying around 20% to 30% of bond issuances from troubled EU countries. This move has likely taken place so that the confidence can be restored after last week's weaker auction of German bunds and soaring of Italy bond yields above 7%. It must be noted that Euro is trading weak vs. the cable which is an indication that Investors are still cautious of the debt crisis in the EU. Support is seen at around 1.3111 levels and resistance is seen at around 1.3397 levels. EUR/INR is at 69.20 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 67-68 levels and below. EUR/INR is likely to trade in the range of 68.70 and 69.35 levels for today. Short Term: Bearish Medium Term Bearish. Exporters can look at covers at 69-70 levels.
GBP/USD: GBP is currently trading at 1.5516 levels. The cable rebounded vs. the US Dollar and it is positive vs. the Euro amid risk sentiment in the financial market and due to Investors preferring GBP over Euro. Support is seen at around 1.5448 levels and resistance is seen at 1.5648 levels (55 days 4 hrly EMA). GBP/INR is at 80.68. GBP/INR is likely to trade in the range of 80.30 and 81.10 levels today. GBP/INR may not fall much due to weakening rupee. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 levels achieved.
USD/JPY: Yen is currently trading at 77.64 levels. Yen weakened as risk aversion loses steam. Strong Support is seen at 77.21 levels (200 and 55 days 4 hrly EMA) while resistance is seen at around 80.10 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 0.9882 levels. The commodity currency recovered from the lows of 0.9666 amid risk sentiment due to positive news of expansion of EFSF fund from EU for buying debt ridden Euro countries bonds. The currency was hammered severely in the recent days and it retraced more than 61.8% Fibonacci on the daily chart. Support is seen at around 0.9698 levels and resistance is seen at around 0.9909 levels. Exporters have already been suggested to book covers above 1.0000 and now Importers can start slow covering below 0.9400 levels. Short Term: Bearish Medium Term: Bearish. Target: 1.0 achieved. Next target 0.9400
Oil: Oil is currently trading at 98.08 levels. Oil is positive on expectation that EU officials will do what it takes to contain the debt crisis and the crude also rallied higher on speculation that Arab league sanctions against Syria will threaten Middle East stability. Support is seen at around 95.37 levels while resistance is seen at 97.26 levels (55 days 4 hrly EMA). 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 1704.65 levels. Gold recovered as the dollar weakened in the early Monday trading amid risk sentiment, increasing demand for the precious metal. Support is seen at around 1678.05 levels and strong resistance is seen at 1709.06 levels (21 and 55 days daily EMA). As suggested at 1800 Stay away from longs until we see significant corrections. Look at Initiating shorts at good resistances. Outlook stays bearish may target 1600 soon. Look at shorts.
Dollar Index: DI is currently trading at 79.34 levels. Demand for US Dollar reduced today amid positive efforts from the EU officials in containing the worsening debt crisis from engulfing the financial world. Support is seen at 79.06 levels (21 days 4 hrly EMA) and resistance is seen at around 79.70 levels. Short term and Medium Term: Bullish. Target 79 achieved Next target 81.
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.