EUR/USD: EUR is currently trading at 1.3789 levels. Euro rallied after some selling was seen due to unexpected reduction in key interest rates yesterday as Greek Prime Minister hinted he won't call for a referendum next month on a bailout plan, easing concern that Greece will default. Looking ahead German Factory Orders m/m data is expected better. Support is seen at 1.3718 levels (200 days weekly EMA) and strong resistance is seen at 1.3834 levels (21 and 55 days daily EMA). EUR/INR is at 67.73 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 1.6000 levels. The cable is positive vs. the US dollar on risk sentiment but weak against the euro as stronger euro on the board reduced demand of the cable as an alternative option in the region. Support is seen at 1.5952 levels (100 days daily EMA) and resistance is seen at around 1.6041 levels. 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. Support is seen at 77.59 levels (100 days daily EMA) levels while resistance is seen at 78.99 (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 is positive vs. the greenback amid risk sentiment in the market in spite of the RBA decision to cut Australia's forecasts for economic growth and inflation for the next two years as financial crisis in euro zone and weak global outlook abroad makes businesses more reluctant to hire and consumers cautious about spending. Strong Support is seen at 1.0319 levels (100, 200 and 55 days daily EMA) and resistance is seen at around 1.0501 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 93.81 levels. Oil rallied on optimism that Greece will not default. Support is seen at 90.63 levels (200 days daily EMA) while resistance is seen at around 94.38 levels. Outlook: Short term bearish and medium term bearish Target 85 levels again.
Gold: Gold is currently trading at 1759.00 levels. The metal is positive as its shine increased on prospect that Investors are cautious about the global health. Support is seen at 1707.39 (55 and 21 days daily EMA) and resistance is seen at around 1767.27 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 76.44 levels. Dollar is weak today on prospect that Greek Prime Minister hinted he won't call for a referendum next month on a bailout plan, easing concern that Greece will default on his debt obligations. Looking ahead Non-Farm Employment Change data is expected weak, Unemployment Rate data is expected unchanged at 9.1, and Average Hourly Earnings m/m data is expected neutral. Strong Support is seen at 76.61 levels (21 and 200 days daily EMA) and resistance is seen at around 77.28. 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.