Technical Outlook:

EUR/USD: EUR is currently trading at 1.3707 levels. Euro collapses head over heels vs. the US Dollar and GBP on prospects that the Greek government have decided to give Prime Minister George Papandreou unanimous backing for his plans to hold a referendum putting all efforts of containing the Euro zone debt crisis at stake. Meanwhile France and Germany have summoned Greece Prime Minister to crisis talks in Cannes today to push for a quick implementation of Greece's new bailout deal ahead of a summit of the G20 major world economies. Support is seen at around 1.3653 levels and strong resistance is seen at 1.3840 levels (21 and 55 days daily EMA). EUR/INR is at 67.69 levels. Exporters can cover short to medium term exposure between 1.37-1.40 levels in EUR/USD leg only while Importers can cover exposure at 67.00 levels and below. EUR/INR is likely to trade in the range of 67.50 and 68.10 levels for today. Short Term: Bearish Medium Term Bearish. Target 1.3500 levels.

GBP/USD: GBP is currently trading at 1.5966 levels. The cable weakened vs. the US dollar amid risk aversion in the market but it is strong vs. the Euro as Investors are going for the relative safety of the cable as Euro debt crisis is worsening. Looking ahead Construction PMI data is expected neutral at 50.1. Support is seen at 1.5876 levels (55 days daily EMA) and resistance is seen at 1.6008 levels (200 days daily EMA). GBP/INR (78.85) Exporters can cover short term exposure at current levels and slightly higher while the short term importers can cover on dips towards 76.00 and below levels. GBP/INR is likely to trade in the range of 78.30 and 79.00 levels today. Maintain short term Bearish  and Medium Term Bearish. Target 1.5500 levels.

USD/JPY: Yen is currently trading at 78.16. The yen bulls are active as global outlook continue to attract Investors to yen and other safe havens but the bulls are cautious following the recent intervention by the Japanese government. Support is seen at 77.58 levels (100 days daily EMA) levels while resistance is seen at 79.01 (200 days daily EMA). Yen exporters have already been suggested to book exposure around 76 levels and Importers suggested to cover at around 79 plus levels. Outlook: Short Term slight Bearish and Medium Term: Maintain bearish for the pair. Target 80 levels almost achieved.

AUD/USD: The commodity currency is currently trading at 1.0342 levels. The Australian dollar slipped vs. the greenback amid risk aversion in the market and amid yesterday's RBA reduction of Benchmark Rate by 25bps to 4.50% as Expected from 4.75%, reducing demand for higher yielding assets. Building Approvals m/m data came out weaker today at  -13.6% vs. the expectation of -4.5%. Support is seen at 1.0266 levels (55 days daily EMA) and resistance is seen at 1.0425 (55 days 4hrlyEMA) levels. Exporters can cover to book export exposure at current levels while Importers can hold to cover. Short Term: Overbought Medium Term: Bearish. Target: Parity soon.

Oil: Oil is currently trading at 91.44 levels. Oil is still weak on expectation of low demand due to weakening global outlook. Support is seen at 90.59 levels (200 days daily EMA) while resistance is seen at around 93.74 levels. Outlook: Short term bearish and medium term bearish Target 85 levels again.

Gold: Gold is currently trading at 1725.80 levels. The metal is slightly in the uptrend since yesterday largely due to the confusion surrounding the Euro issue. Support is seen at 1681.02 (100 days daily EMA) and resistance is seen at around 1744.64 levels. Stay away from longs until we see significant corrections. Look at initiating shorts at good resistances. Target 1700 and below again.

Dollar Index: DI is currently trading at 77.32 levels. Dollar is positive across the board except against the Yen as worsening Euro crisis and slowing down of China's economy is spurring safe haven US dollar demand. Looking ahead ADP Non-Farm Employment Change data is expected better and key interest rates is expected to remain unchanged at 0.25%. Strong Support is seen at 76.56 levels (21 and 200 days daily EMA) and resistance is seen at 77.77 levels (100 days weekly EMA). Short term and Medium Term: Bullish. Target 77 reached.

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.