EUR/USD: EUR is currently trading at 1.3370 levels. Euro weakens as S&P places 15 Euro-zone Members on CreditWatch Negative which also include Germany and France AAA ratings due to their inability to implement sustainable structural changes that would ensure the future of the Euro zone and tightening credit conditions across the Euro-zone. Support is seen at around 1.3332 levels and strong resistance is seen at 1.3419 levels (21 and 55 days 4 hrly EMA). Short Term: Bearish Medium Term Bearish Target 1.30 levels.

GBP/USD: GBP is currently trading at 1.5620 levels. The cable weakens vs. the US Dollar on the back of risk aversion as S&P threatens to downgrade 15 EU nations including Germany and France. Support is seen at around 1.5587 levels and resistance is seen at 1.5678 levels (21 days daily EMA). Maintain short term Bearish and Medium Term Bearish. Target 1.5500 again.

USD/JPY: Yen is currently trading at 77.82 levels. The yen rose against its major counterparts as Asian stocks declined along with riskier currencies after Standard & Poor's put 15 European nations on watch for potential downgrades. Strong support is seen at 77.56 levels (21 and 100 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 1.0193 levels. The commodity currency weakened against most of its major peers on bets that RBA might cut interest rates again today to sustain the economy as Europe's debt crisis weighs on global growth. Although the key interest rates was left unchanged by RBA at 4.25%. Support is seen at 1.0142 levels (55 days daily EMA) and resistance is seen at around 1.0286 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 is currently trading at 100.51 levels. Oil erases its gain, as S & P warned Major European countries, could be put on credit watch negative. Oil continues to trade above the 100mce_markernbsp;mark on concern that tension in the Middle East will curb crude supplies. Support is seen at 98.30 levels (21 days daily EMA) while resistance is seen at around 102.82 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 1714.96 levels. The S & P warning against EU members spurred risk aversion and sent gold down as Dollar gained strength across the board. Support is seen at 1705.73 levels (100 days daily EMA) and resistance is seen at around 1727.63 levels (200 and 55 days 4 hrly EMA). 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 are expected better. Support is seen at around 78.30 levels (21 days daily EMA) and resistance is seen at around 79.17 levels. Short term and Medium Term: Bullish. Target 81

DISCLAIMER
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.