Rupee : Rupee corrected to close to 48.00 levels due to excessive euro strength overseas and buying across commodities and stocks. We expect rupee to hold weak in medium term targeting 49 plus levels again. We have major trend support at 48.00 levels which is likely to hold for the week. Importers are advised to cover around these levels. Exporters hold on to cover. Bearish (USD/INR : 48.00).

Euro : The rising wedge formation and channel resistance at 1.47 levels shows that there is only a little room left for movement and a downward breakout looks possible. Immediate support is seen at 1.4570. Break below that area could be a valid breakdown from the rising wedge and could trigger a downside momentum. Look for short opportunities. (EUR/USD 1.4735) Neutral.

Sterling : Pound broke below 1.65 after the comments from the King. It holds a strong resistance at around 1.6530 below which the outlook remains bearish. Shorts to be favoured if cable maintains below 1.6500 levels again. (GBP/USD 1.6510) . Neutral to Slight Bearish

Yen : Yen attempted to push higher yesterday but failed to break above 91.80 and closed lower close to 91.00. The bearish correction phase might over now and we are ready for a bearish continuation outlook. The bias is bearish in nearest term re-testing 90.20 area. Immediate resistance at 91.60/80 area. Break above that area should be seen as a potential threat to the current bearish outlook. Yen should bottom close to 89-90 levels.(USD/JPY 91.10) Bullish

. Aud : Aud maintains the bullish bias. Buying at dips close to important supports remains the best strategy in the current market scenario.Only a continuous move below 0.8400 would break the trendline and stand bearish for the pair. (AUD/USD -0.8758) Bullish

Gold : Gold has maintained the bullish bias and has met our medium term target of $1020 levels.Buying on dips is recommended. (Gold $1020).Bullish

Dollar Index : The Dollar Index (basket against 6 currencies with EUR accounting for 57% of the basket) needs to break the levels of 79.50 to maintain strength again otherwise rangebound. It could bottom close to 75.50 levels. (Dollar Index - 76.13).Neutral