Technical Outlook:

EUR/USD: EUR is currently trading at 1.3836 levels. Euro rallied vs. the US dollar after Mr. Berlusconi said that he would step down after the necessary budgetary reforms to help Italy cut its deficit were enacted. Earlier Italian Prime Minister Silvio Berlusconi had come under increasing pressure to leave power as his reforms to safe Italy from contagion have proven futile. Support is seen at 1.3721 levels and resistance is seen at 1.3915 levels (100 days daily EMA). EUR/INR is at 68.83 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 68.50 and 69.20 levels for today. EUR/INR could move to 70 again. Short Term: Bearish Medium Term Bearish.Target 1.3500 levels.

GBP/USD: GBP is currently trading at 1.6097 levels. Support is seen at 1.6009 levels (200 days daily EMA) and resistance is seen at around 1.6139 levels. GBP/INR (80.11) Exporters can cover short term exposure at current levels and slightly higher while the short term importers can cover on dips towards 78.00 and below levels. GBP/INR is likely to trade in the range of 79.50 and 79.40 levels today. GBP/INR may not fall much due to weakening rupee. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 levels.

USD/JPY: Yen is currently trading at 77.57. Yen rallied vs. the US dollar as traders and investors have started to speculate that the intervention by BOJ at least for now is less likely to happen. Support is seen at 77.19 levels (55 days daily EMA) levels while resistance is seen at 78.95 (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. Next target 76 again.

AUD/USD: The commodity currency is currently trading at 1.0360 levels. The Australian dollar is positive vs. the greenback amid risk sentiment today and better than expected Home Loans m/m data this morning, increasing demand for higher yielding assets like AUD. Support is seen at 1.0281 levels (55 days daily EMA) and resistance is seen at around 1.0482 levels. Exporters can cover to book export exposure at current levels while Importers can hold to cover. Short Term: Overbought Medium Term: Bearish. Target: 1.0 soon.

Oil: Oil is currently trading at 97.12 levels. Oil rallied on speculation Iran's nuclear plans is likely to invoke wars which threaten the Middle East stability. Support is seen at around 93.67 levels while resistance is seen at around 98.80 levels. Outlook: Short term bearish and medium term bearish Target 90 levels again.

Gold: Gold is currently trading at 1792.30 levels. Gold is slight positive and it is maintaining its recent gains on concern about the weak global outlook which is prompting Investor in turning towards safer assets like gold. Support is seen at around 1775.57 and resistance is seen at around 1798.01 levels. Stay away from longs until we see significant corrections. Look at initiating shorts at good resistances.

Dollar Index: DI is currently trading at 76.66 levels. Dollar weakened slightly today across the board on optimism that the news of Italy PM to step down will help in containing the debt crisis from spreading. Support is seen at 76.25 levels (100 days daily EMA)  and resistance is seen at around 77.44 levels. Short term and Medium Term: Bullish. Target 79 again.

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.