Euro: Euro took resistance from the 21 Daily EMA at 1.2726 yesterday and plunged to a low of 1.2555. The 4-hourly and daily charts are indicating slight upside while the hourly is completely overbought. Immediate resistance comes at 1.2720 breaking which Euro can test 1.2940 (55 Daily EMA). Opportunities to initiate shorts around the resistance zone could be considered. On the downside, 1.25 remains as an important support. (Eur/Usd:1.2653).
Pound: Cable broke the important 1.3950 support yesterday above which it was consolidating for the past few trading session and dived to the lows of 1.3741 (from 1.4182 highs). Currently Cable is trading around 1.38 levels, with all the charts indicating further downside for the currency. Sustaining at these levels can bring a retest of the previous lows of 1.35. Initiate shorts around 1.3840 for 70-80 pips. (Gbp/Usd: 1.3788)
Yen: The Usd/Jpy pair gained around 125 pips from the bids of 97.91 yesterday. Currently trading around 98.90 levels, all the charts are showing further upside for the pair. Support comes in around 97 levels and sustaining above those levels can bring a rebound and take the pair to 100.40(55 Weekly EMA) and then to 101.60 (61.8% Retracement of the fall in daily charts). (Usd/Jpy: 98.95)
Rupee: Rupee declined to marginally break the 52-mark and ended at 51.85/87 against the USD yesterday. The rupee has shed 6.1 percent so far in 2009. Sources say that FII€™s have sold about $2.3 billion worth of shares in 2009 after dumping more than $13 billion in 2008. World stocks sank towards 14-year lows in a broad-based sell off. One-month offshore NDF was quoting at 52.28/52.38, weaker than the onshore spot rate, indicating a bearish near-term outlook for the rupee. The dollar is also strengthening across the board. Indian financial markets remain closed today. (USD/INR:51.86)
Swiss Franc: The Usd/Chf pair traded sideways within 150 pips yesterday touching a low of 1.1533 (55 Daily EMA). Major charts are nearing the over-sold region and some more weakness could be seen in the pair. Thus selling around 1.1625 (21 daily EMA) can be considered for intraday 80 pips. On the downside 1.1450 (100 daily EMA) comes in as a strong support. (Usd/Chf: 1.1551)
Australian Dollar: Aussie plunged 143 pips yesterday from the expected highs of 0.6450 (21 daily & 100 4-hourly EMA). The daily chart is flat and 4-hourly chart is giving buying pressure for the Aussie above the 0.63 levels (yesterday's low). Upside could first be restricted around the 21 daily EMA (0.6443) and then at 0.6577 (55 Daily EMA). (Aud/Usd:0.6380).
Gold: Gold nose-dived almost $30 in yesterday€™s trade to test $911. The daily chart has corrected and is indicating a downside. On the upside resistance comes in at $929 where selling gold can be considered for intraday $12. Immediate downside is seen around the $900 levels (55 daily EMA) below which the support is at $877 (100 Daily EMA). Buy Gold around those levels for $15 gain.(Gold: $915.00)
Dollar index: Dollar Index is holding strong at 88.89 levels with the stochastic at 77.06.
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.