EUR/USD: Euro is currently trading at 1.4385 levels. The euro is range bound against the dollar as US President Barack Obama announced that party leaders had reached an agreement to raise the debt ceiling. CPI Flash Estimate y/y data came out weaker last Friday. Looking ahead Unemployment Rate data is expected neutral. Strong Support is seen at 1.4322 levels (21 and 55 days daily EMA) while resistance is seen at around 1.4436 levels. EUR/INR (63.33): Exporters can cover short term exposure at 63.70 levels while importers can cover short term exposure at 62.50 and below. EUR/INR is likely to trade in the range of 62.90 -63.70 levels today. Short term: Bearish. Medium term: Bearish. Target 1.3800-1.4000 levels
GBP/USD: Sterling is currently trading at 1.6446 levels. Last Friday Net Lending to Individuals m/m data came out weaker than expected. Looking ahead Manufacturing PMI data is expected weaker. Support is seen at around 1.6369 levels and resistance is seen at around 1.6500 levels. GBP/INR (72.42): Exporters can cover short term exposure at current levels while the importers can wait to hedge near 71.50 levels. GBP/INR is likely to trade in the range of 72.00 - 72.60 levels today. Short term: Bearish. Medium term: Bearish. Target - 1.5800 levels
AUD/USD: The Aussie is comfortably trading above 1.1000 levels at 1.1045 currently. The commodity currency is positive along with Asian stock markets as US President Barack Obama announced that party leaders had reached an agreement to raise the debt ceiling, spurring demand for higher-yielding assets. Support is seen at 1.0979 levels (21 days 4 hourly EMA) and resistance is seen at around 1.1078 levels. Exporters are suggested to book exposure at current levels while Importers can partially cover their near term exposure at 1.0700 levels. Short term: bullish. Medium term: bearish. For the AUD target 1.0700 levels.
USD/JPY: Yen is currently trading at 77.59 levels. The yen weakened against the dollar after being positive in recent days as it now seems that US default will be averted. Support is seen at around 76.88 levels while resistance is seen at 78.64 levels (21 days 4hrly EMA). Yen Exporters are suggested to book exposure at current levels and Importers can cover above 80.00 levels. Outlook: Short term to medium term: Maintain bearish for the pair. Target 76 levels.
Oil: Oil is currently trading at 97.15. Oil is positive as President Barack Obama said leaders of both parties in the U.S. House and Senate agreed to raise the nation's debt ceiling, fueling speculation that demand will increase in the biggest crude-consuming nation. Support is seen at 96.05 levels (200 days daily EMA) while resistance is seen at 97.72 levels (55 days daily EMA). Outlook: Short term bullish and medium term bearish.
Gold: Gold is currently trading at 1612.69 levels. Gold is trading in red after indication that US will not default on its debt enabling investors to take a sigh of relief and to book profits in gold. Support is seen at 1605.65 levels (21 days 4hrly EMA) while resistance is seen at around 1628.39 levels. Outlook: Medium term Bullish target 1650.
Dollar Index: DI is currently trading at 73.90 levels. Dollar has recovered slightly after US President announced that deal has been reached with regards to raising the debt ceiling and US will not default on its debt obligations. Looking ahead ISM Manufacturing PMI data is expected weak. Support is seen at 73.53 levels (Trend Line support) and Resistance is seen at 74.47 levels (21 days daily EMA). Outlook remains Slight bullish for Short Term and Medium Term: Bullish Target 76 levels.
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.