EUR/USD: EUR is currently trading at 1.3408 after making a high of 1.3521 levels. Euro continues to trade under pressure owing to its worsening debt issues even though the Italy's Cabinet approved the mix of tax hikes, pension reforms and incentives to boost growth in a three hour meeting on Sunday which aims to raise around 30 billion Euros from a new property tax, new added taxes on luxury items, raise value added tax, crack down on tax evasion and bring forward measures to increase the pension age. The market participants are now looking towards this week meeting France and Germany as they push forward towards a new EU fiscal union that might provide a longer term solution to the threatening Debt Crisis. Looking ahead Retail Sales m/m data is expected better. Support is seen at around 1.3348 levels and resistance is seen at 1.3618 levels (55 days daily EMA). EUR/INR is at 68.74 levels. EUR/INR is likely to trade in the range of 68.40 and 69.00 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 1.5605 levels. The cable is slightly positive vs. the US Dollar and Euro as better than expected Construction PMI data last Friday and continuous Euro zone debt crisis increased the demand for the cable in the region. Looking ahead Services PMI data is expected weak today. Support is seen at around 1.5554 levels and resistance is seen at 1.5679 levels (21 days daily EMA). GBP/INR is at 79.98. GBP/INR is likely to trade in the range of 79.80 and 80.30 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 77.97 levels. Support is seen at 77.55 levels (100 and 21 days daily EMA) while resistance is seen at 78.64 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 1.0231 levels. The commodity currency is trading sideways and slightly weak vs. the dollar as uncertainty in the market is also adding pressure on this high yielding currency even though Company Operating Profits q/q data and ANZ Job Advertisements m/m data came out better than expected this morning, decreasing demand for higher yielding currency like AUD. Support is seen at 1.0140 levels (55 days daily EMA) and resistance is seen at around 1.0347 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. Oil continue to trade above the 100$ mark on concern that tension in the Middle East will curb crude supplies. Support is seen at 98.08 levels (21 days daily 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 1745.40 levels. Strong support is seen at 1722.42 levels (55 days daily EMA) and resistance is seen at around 1791.90 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 78.57 levels. Dollar is trading quite firmly and is it slightly bullish today as debt crisis in the Euro zone continues to attract Investors towards the US Dollar and US treasuries. Looking ahead ISM Non-Manufacturing PMI data is expected better. Support is seen at around 78.26 levels (100 days 4 hrly EMA) and resistance is seen at around 79.15 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.