EUR/USD: EUR is currently trading at 1.3762 levels. Euro weakened vs. the US dollar before Italian Prime Minister faces a budget vote amid pressure to quit and surging borrowing costs in Italy's bonds, increasing concerns that the Euro zone debt crisis is worsening. Support is seen at 1.3711 levels and strong resistance is seen at 1.3825 levels (21 and 55 days daily EMA). EUR/INR is at 67.78 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 1.6051 levels. The cable is positive vs. the US dollar and the Euro as weakening Euro and worsening Euro zone debt crisis along with better than expected UK's Halifax HPI m/m data yesterday has increased the cable's demand as an alternative currency in the region. Support is seen at 1.5957 levels (100 days daily EMA) and resistance is seen at around 1.6128 levels. GBP/INR (79.06) 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 79.50 and 79.40 levels today. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 levels.
USD/JPY: Yen is currently trading at 78.04. Support is seen at 77.62 levels (100 days daily EMA) levels while resistance is seen at 78.96 (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 1.0347 levels. The Australian dollar is weak vs. the greenback amid risk aversion and weaker than expected Trade Balance data this morning, decreasing demand for higher yielding assets like AUD. Support is seen at 1.0277 levels (55 days daily EMA) and resistance is seen at 1.0382 levels (55 days 4hrly EMA). 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 95.54 levels. Oil price is rising amid decrease in fuel supply in US which is likely to increase its demand. Support is seen at 90.76 levels (200 and 21 days daily EMA) while resistance is seen at around 98.80 levels. Outlook: Short term bearish and medium term bearish Target 85 levels again.
Gold: Gold is currently trading at 1791.93 levels. Gold rises on concern about the weak global outlook and worsening Euro zone debt crisis which is prompting Investor in turning towards safer assets like gold. Support is seen at 1709.75 (55 daily EMA) and resistance is seen at around 1814.09 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 77.00 levels. Dollar and US Treasuries is trading strong across the board except against the Yen and the Cable as uncertainties continue to deter Investors in taking riskier assets and the flight to safety continues. Support is seen at 76.81 levels (21 days daily EMA) and resistance is seen at around 77.21 levels. 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.