Technical Outlook:

EUR/USD: EUR is currently trading at 1.3312 levels. Euro weakened vs. the US Dollar amid risk aversion in the global market after weaker than expected US New Home Sales data yesterday and on news that Moody's Investors Service is reviewing European banks' subordinated, junior and Tier 3 debt ratings. Egan-Jones has also cut the sovereign debt rating of Italy to BB from BB+. Egan-Jones is one of the independent rating agencies that is much smaller than the 3 larger popular rating agencies like S&P, Moody's and Fitch but extremely well respected in the market. Their decision to cut Italy six notches below Moody's and S&P which probably more accurately reflects the increased likelihood of default by Italy. Support is seen at around 1.3232 levels and resistance is seen at 1.3421 levels (55 days 4 hrly EMA). EUR/INR is at 69.25 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 1.5501 levels. The cable weakened vs. the US Dollar and it gave up yesterday's gains amid risk  aversion and after weaker than expected CBI Realized Sales data yesterday. Support is seen at around 1.5448 levels and resistance is seen  at 1.5621 levels (55 days 4 hrly EMA). GBP/INR is at 80.52. 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 78.15 levels. Yen continue to trade weak on growing concern that Japanese official will take more steps to stem the Yen's strength. Support is seen at 77.52 levels (100 daily EMA) while resistance is seen at 78.69 levels (200 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 0.9921 levels. The commodity currency gave up some of its yesterday's gain after the government said it will reduce spending by a $6.8 billion in order to create a budget surplus, which is likely to add more pressure on the central bank to cut interest rates further. Support is seen at 0.9830 levels and resistance is seen at 0.9996 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 97.64 levels. Oil collapsed as EU debt crisis continues and on speculation that crude and gasoline stockpiles have increased in US. Support is seen at 96.62 levels (100 days 4 hrly EMA) while resistance is seen at around 100 levels. 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 1709.15 levels. Support is seen at round 1680.83 levels and strong resistance is seen at 1720.59 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 79.17 levels. Demand for dollar continues and 10 yr US Treasury bond yield is trading at slightly less than 2% which shows demand for US denominated assets is very strong in this uncertain global scenario. Support is seen at around 78.75 levels and resistance is seen at around 79.67 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.