Technical Outlook:

EUR/USD: Euro is currently trading at 1.4500 levels. The euro is slight positive vs. the dollar before the U.S. House votes on a plan to cut government spending in exchange for raising the debt ceiling. Yesterday GFK German Consumer Climate data came out weaker than expected. Looking ahead German Prelim CPI m/m is expected better and M3 Money Supply y/y data is expected neutral. Support is seen at 1.4409 levels (21 days 4 hourly EMA) while resistance is seen at around 1.4562 levels. EUR/INR (63.81): Exporters can cover short term exposure at current levels while importers can cover short term exposure at 62.50 and below. EUR/INR is likely to trade in the range of 63.52-64.05 levels today. Short term: Bearish. Medium term: Bearish. Target 1.3800 levels.

GBP/USD: Sterling is currently trading at 1.6419 levels. The pound is positive vs. the dollar on the back of risk sentiment in the market. Yesterday Prelim GDP q/q came out as expected. Looking ahead CBI Industrial Order Expectations data is expected weak. Support is seen at around 1.6322 levels and resistance is seen at around 1.6476 levels. GBP/INR (72.33): Exporters can cover short term exposure at current levels while the importers can wait to hedge near 71.20 levels. GBP/INR is likely to trade in the range of 72.15-72.60 levels today. Short term: Bearish. Medium term: Bearish. Target - 1.5800 levels.

AUD/USD: The Aussie is currently trading at 1.1034 levels after making an all time high of 1.1062 levels. Australia's Dollar is strong against the USD on the back of risk sentiment boosting demand for higher-yielding assets. CPI q/q data came out better this morning. Support is seen at 1.0880 levels (21 days 4 hourly EMA) and resistance is seen at around 1.1100 levels. Exporters are suggested to book exposure at current levels and above while Importers can partially cover their near term exposure at 1.0800 levels. Short term: bullish. Medium term: bearish. Target 1.0500 levels.

USD/JPY: Yen is currently trading at 77.84 levels. The Yen is positive vs. the dollar on the back of risk sentiment in the market due to the uncertainties surrounding the issue of raising the debt ceiling. Support is seen at 77.00 levels while resistance is seen at 78.25 levels (21 days 4hrly EMA). Yen Exporters are suggested to book exposure at current levels and Importers can cover above 78.75 levels. Outlook: Short term to medium term: Maintain bearish for the pair. Target 78 levels.

Oil: Oil is currently trading at 99.13 levels after making the high of 100.61 levels overnight. Oil fell but is currently range bound on speculation that Crude oil inventories data today will show rising US crude stockpiles which may falter demand in the world's biggest consumer of the commodity. Support is seen at 98.26 levels (100 days daily EMA) while resistance is seen at 100 levels. Outlook: Short term bullish and medium term bearish

Gold: Gold is currently trading at 1620.71 levels after making a record high of 1624.02. Investors running for the safety of the Gold as US struggles to reach an agreement on raising the federal debt ceiling limit. Support is seen at 1610.37 levels (21 days 4hrly EMA) levels while resistance is seen at 1630 levels. Outlook: Medium term Bullish target 1650.

Dollar Index: DI is currently trading at 73.53 levels. Dollar is weak against the majors on the back of risk sentiment as uncertainties grips the market regarding raising the US debt ceiling limit before the August 2 deadline. Looking ahead Core Durable Goods Orders m/m data is expected weak today. Support is seen at around 72.95 levels and Resistance is seen at around 74.25 levels (Trend line resistance). Outlook remains Slight bullish for Short Term and Medium Term: Bullish Target 77 levels.

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.