EUR/USD: EUR is currently trading at 1.3186 levels. Euro collapsed drastically as Fitch joined Moody’s Investors Service in issuing warning that Euro zone may face lower credit ratings, citing the reason that policymakers as having failed to produce decisive measures to end the ongoing crisis. Support is seen at around 1.3000 levels and resistance is seen at around 1.3323 levels. EUR/INR is at 70.28 levels. EUR/INR is likely to trade in the range of 70.00 and 70.60 levels for today. Short Term: Bearish Medium Term Bearish Target 1.30. Exporters can look at covers at 71 levels.
GBP/USD: GBP is currently trading at 1.5605 levels. Risk aversion in the market made the cable weak vs. the US dollar and the cable rallied very strongly vs. the EURO on the back of continuous negative news emerging from the Euro zone. Looking ahead CPI y/y data is expected weak. Support is seen at around 1.5500 levels and resistance is seen at 1.5746 levels (55 days daily EMA). GBP/INR is at 83.16. GBP/INR is likely to trade in the range of 83.00 and 83.50 levels today. GBP/INR may not fall much due to weakening rupee. Maintain short term Bearish and Medium Term Bearish. Target 1.5500 again.
USD/JPY: Yen is currently trading at 77.87 levels. Tertiary Industry Activity m/m data came out better then expected this morning. Support is seen at 77.57 levels (21 and 100 days daily EMA) while resistance is seen at around 78.03 levels. Outlook: Short Term slight Bullish and Medium Term: Maintain bearish for the pair. Next target 80
AUD/USD: The commodity currency is currently trading at 1.0070 levels. The commodity currency is trading weak vs. the greenback on the back of risk aversion in the market and weaker Housing Starts q/q data this morning. Support is seen at around 1.0000 levels and resistance is seen at 1.0213 levels (100 days daily EMA). Exporters can cover at round 1.0300 levels and Importers can cover below parity levels. Short Term: Bearish Medium Term: Bearish. Target: 0.9700
Oil: Oil is currently trading at 97.97 levels. Oil is trading in red on concerns that Euro zone will not be able to tame it massive debt crisis. Support is seen at 95.47 levels (55 days daily EMA) while resistance is seen at around 101.41 levels. Outlook: Short term bearish and medium term bearish. Target 90-95 levels again. Look at shorts at stiff resistances for medium term.
Gold: Gold is currently trading at 1655 levels. Gold collapsed drastically over night as continuing global weakness made the Investors to buy more US Dollars and to sell the precious metal. Support is seen at around 1650 levels (200 days daily EMA) and resistance is seen at 1693.28 levels (21 days weekly EMA). As suggested earlier stay away from longs until we see significant corrections. Look at Initiating shorts at good resistances. Outlook stays bearish may target 1600-1650 soon. Look at shorts.
Dollar Index: DI is currently trading at 79.57 levels. US Dollar rallied strongly and the investors’ dump the riskier assets after Fitch and Moody’s Investors Service issued warning that Euro zone may face lower credit ratings as the recent EU summit didn’t produced any concrete solution to end the Euro zone crisis. Support is seen at around 79.33 levels and resistance is seen at around 80.00 levels. Short term and Medium Term: Bullish. Target 81.
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These views/ forecasts/ suggestions, though proferred 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.
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