Technical Outlook:

EUR/USD: EUR is currently trading at 1.3454 after making a high of 1.3521 levels. Euro is trading under pressure and risk sentiment  fades after ECB chief Draghi told the EU Parliament that the downside risks to EU had increased and also added that bond purchases must be limited. It must me noted that although six central banks have assured cheap liquidity to European banks but more liquidity is not going to solve the underline problem. Support is seen at 1.3417 levels (55 days 4 hrly EMA) and resistance is seen at 1.3576 levels (200 days 4 hrly EMA). EUR/INR is at 69.23 levels. EUR/INR is likely to trade in the range of 69.00 and 69.50 levels for today. Short Term: Bearish Medium Term Bearish Target 1.30 levels. Exporters can look at covers at 69-70 levels.

GBP/USD: GBP is currently trading at 1.5677 levels. The cable is weak vs. the US Dollar as risk sentiment loses steam but it is trading strong vs. the Euro as ECB president again warned the EU parliament of downside risk. Strong support is seen at 1.5640 levels (21 and 55 days 4 hrly EMA) and resistance is seen at 1.5759 levels (200 days daily EMA). GBP/INR is at 80.67. GBP/INR is likely to trade in the range of 80.30 and 80.90 levels today. GBP/INR may not fall much due to weakening rupee. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 again.

USD/JPY:  Yen is currently trading at 77.83 levels. Capital Spending q/y data came out weaker at  -9.8% vs. the expected -4.1%. Support is seen at 77.52 levels (100 days daily EMA) while resistance is seen at 78.68 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 1.0218 levels. The commodity currency weakened as global growth continues tofalter, decreasing demand for higher yielding currency like AUD. Support is seen at 1.0134 levels (55 days daily EMA) and resistance is seen at around 1.0294 levels. Exporters can cover at current levels and Importers can cover below parity levels. Short Term: Bearish  Medium Term: Bearish. Target: 0.9700

Oil: Oil is currently trading at 100.06 levels. Downside risk warning by ECB chief on Euro zone and weaker US Unemployment Claims data yesterday led to risk sentiment losing steam as crude long position was cut on speculation that faltering economy will decrease  crude demand. Support is seen at 99.53 levels (21 days 4 hrly EMA) while resistance is seen at around 102.23 levels. Outlook: Short term bearish and medium term bearish. Target 90-95 levels again. Look at shorts at stiff resistances for medium term.

Gold: Gold is currently trading at 1742.65 levels. Strong support is seen at 1720.70 levels (21 and 55 days daily EMA) and resistance is seen at 1800 levels. As suggested earlier stay away from longs until we see significant corrections. Look at Initiating shorts at good resistances. Outlook stays bearish may target 1600-1650 soon. Look at shorts.

Dollar Index: DI is currently trading at 78.30 levels. Risk aversion rebounded after weaker than expected Unemployment Claims data and after ECB chief's warning of downside risk in Euro zone, spurred demand for more safe haven US dollars. Support is seen at around 77.65 levels (200 days 4 hrly EMA) and resistance is seen at 78.56 levels (55 days 4 hrly EMA). Short term and Medium Term: Bullish. 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.