EUR/USD: EUR is currently trading at 1.3339 levels. Euro continue to trade under pressure as Italy just managed to sell EUR 7.5bn of its bonds yesterday although the target was of EUR 8bn. 10 yr bond was sold at 7.56% yield which is very high and something the Investors will be keenly watching closely as the yields shows no signs of cooling down. Speculation and rumors are everywhere these days as uncertainties regarding the EU debt continues to haunt the Investors. One newspaper in EU said that S&P will lower the France AAA rating in the next 10 day while there was another speculation that EU finance ministers meeting today will discuss a structure where the ECB lends to the IMF which on lends to the needy EU countries. Meanwhile EU ministers have agreed to release an 8 billion euro aid payment to Greece, the 6th installment of 110 billion Euros of loans agreed last year and necessary to help Athens stave off the immediate threat of default. The EU officials also said that the work of leveraging EFSF fund will be completed by January. Support is seen at around 1.3225 levels and resistance is seen at 1.3404 levels (55 days 4 hrly EMA). EUR/INR is at 69.45 levels. EUR/INR is likely to trade in the range of 69.00 and 69.80 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 is positive vs. the US Dollar and Euro after better than expected Net Lending to Individuals m/m and Nationwide HPI m/m data yesterday and as demand for the cable and UK Gilts continues to rise on the back of severe weakness in the EU. Support is seen at around 1.5448 levels and resistance is seen at 1.5800 levels (55 days daily EMA). GBP/INR is at 81.27. GBP/INR is likely to trade in the range of 81.00 and 81.50 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. In spite of the worsening EU debt crisis and in spite of strengthening Yen due to its safe haven status Prelim Industrial Production m/m data today came out better then expected indicating the country is on its path to recovery after the tragic earthquake earlier this year. Support is seen at 77.53 levels (100 daily 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 1.0017 levels. The commodity currency is quite positive after it steep correction in recent days and after Fitch Ratings has upgraded Australia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'AAA' from 'AA+ which is reflecting its fundamental credit strengths and strong economy in this weak global scenario. Some Investors are now dumping Euro bonds and instead preferring Australian bonds to lower their risk. Support is seen at around 0.9919 levels and resistance is seen at 1.0090 levels (200 days daily EMA). 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: 0.9500
Oil: Oil is currently trading at 99.24 levels. Oil is positive on signs that US is recovering after better than expected US CB Consumer Confidence data yesterday. Support is seen at 96.52 levels (21 days daily 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 1722.90 levels. Support is seen at round 1702.23 levels (100 days daily EMA) and resistance is seen at around 1792 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 soon. Look at shorts.
Dollar Index: DI is currently trading at 79.08 levels. Support is seen at 78.29 levels (21 days daily EMA) and resistance is seen at around 79.60 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.