Technical Outlook:

EUR/USD: EUR is currently trading at 1.3417 levels. Euro is positive vs. the greenback on better than expected German Factory Orders m/m data yesterday and an optimism that the Euro zone is working to expand EFSF funds available to the region's most-indebted nations as leaders prepare to meet in Brussels tomorrow on the credit crisis. Meanwhile negative news continues to surface for EU and this time Standard & Poor's placed the EFSF bailout fund under negative watch, saying it could drop one or two notches from AAA if its guarantors are downgraded. Looking ahead German Industrial Production m/m data is expected better. Support is seen at around 1.3334 levels and resistance is seen at 1.3458 levels (100 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 1.5609 levels. Sterling fell against the dollar, dragged down by the euro worsening outlook and after the S&P's warning of a ratings downgrade to the euro zone bailout fund if the guarantors are downgraded highlighted the fiscal pressures facing the region's countries if EU leaders fail to reach an agreement to solve the debt crisis later in the week. It must be noted that the BOE has also said in their recent statements that the inability of EU leaders to solve their debt crisis is putting downward pressure on the UK's economy and further expansion of QE may be required to spur growth in the Economy. Support is seen at around 1.5558 levels and resistance is seen at 1.5767 levels (55 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 77.74 levels. Strong support is seen at 77.55 levels (21 and 100 days daily EMA) while resistance  is seen at 78.63 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 1.0266 levels. The commodity rallied strongly vs. the greenback on the back of risk sentiment and after GDP data came out as expected this morning, increasing demand for higher yielding currency like AUD. Support is seen at 1.0145 levels (55 days daily EMA) and resistance is seen at around 1.0303 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 101.43 levels. Oil continues to trade above the 100$ mark on news that European Union indicated it may ban imports of Iranian crude oil and today U.S. stockpiles data is expected to show that crude oil inventories declined. Support is seen at 98.58 levels (21 days daily EMA) while resistance is seen at around 102.90 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 1728.85 levels. A weaker dollar today helped the precious metal to rally slightly today. Support  is seen at around 1678.84 levels 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 78.51 levels. Dollar trading weak today on optimism that EU leaders meeting tomorrow in Brussels will yield positive results in containing the debt crisis in the Euro zone. Support is seen at 78.32 levels (100 days 4 hrly EMA) and resistance is seen at around 79.00. 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.