Technical Outlook

EUR/USD: EUR is currently trading at 1.3684 levels. Euro collapses vs. the US Dollar on worsening euro zone debt crisis after recent shocking revelation from Greece Prime Minister and now French President Nicolas Sarkozy have said Greece won't receive a single cent in aid without holding to their terms of the bailout agreement. Looking ahead Euro Key Interest Rates is expected to remain unchanged today. Support is seen at around 1.3602 levels and strong resistance is seen at 1.3805 levels (21 and 200 days 4 hrly EMA). EUR/INR is at 67.63 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 66.50 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 1.5880 levels. The cable weakened vs. the US dollar tracking weaker Euro and risk aversion in the market. Looking ahead Services PMI data is expected weak. Support is seen at 1.5855 levels (200 days 4 hrly EMA) and resistance is seen at 1.5959 levels (55 days 4 hrly EMA). GBP/INR (78.56) 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 78.05. The yen bulls are active as global outlook continue to attract Investors to yen and other safe havens. Support is seen at 77.59 levels (100 days daily EMA) levels while resistance is seen at 79.00 (200 days daily EMA). Yen exporters have already been suggested to book exposure around 76 levels and Importers suggested covering at around 79 plus levels. Outlook: Short Term slight Bearish and Medium Term: Maintain bearish for the pair. Target 80 levels almost achieved. Next target 76 again.

AUD/USD: The commodity currency is currently trading at 1.0237 levels. The Australian dollar slipped vs. the greenback amid risk aversion in the market and amid today's weaker than expected AIG Services Index data, reducing demand for higher yielding assets. Support is seen at around 1.0212 levels and resistance is seen at 1.0328 (100 and 21 days daily EMA) 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 91.76 levels. Oil is weak on fear of global slowdown, consequently hampering demand. Also larger than expected oil inventories in the US reduced the price action in crude. Support is seen at 90.60 levels (200 days daily EMA) while resistance is seen at around 93.67 levels. Outlook: Short term bearish and medium term bearish Target 85 levels again.

Gold: Gold is currently trading at 1729.35 levels. The metal is holding steady ahead of the G20 summit, but is expected to remain volatile. Support is seen at 1700.33 (55 days daily EMA) and resistance is seen at around 1744.92 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 77.08 levels. Dollar is positive across the board as worsening Euro crisis is spurring safe haven US dollar demand. Looking ahead Unemployment Claims data and ISM Non-Manufacturing PMI data is also expected better. Strong Support is seen at 76.61 levels (21 and 200 days daily EMA) and resistance is seen at around 77.41. Short term and Medium Term: Bullish. Target 77 reached next target 79.

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.