The Dow Jones (13117.51, +21.34) extended its gains to close at 3-Month high, but was down 70 points from the days high. It is expected to face resistance at 13200-50 range. The trend is still bullish but caution is advised.
The Nikkei (8765, +39) has risen above its Resistance 8715 and with the short term trend being up it can rise towards 8900-50 soon.
Shanghai (2155.36, +0.02%) has broken the level of 2140 and can now move towards 2200. The trend is not bullish as yet but this can be termed as a bounce from over sold levels.
Nifty (5282.55, +66.85) moved up smartly but has resistance at 5300. It is in an uptrend since Mid May.
Dax (6918.72, +0.77%) continues its uptrend since June but has resistance ahead at 6950-7000 which can hold the index. A close below 6850-40 can take the index back to 6670-50. European markets are rallying in expectation of more help for the Euro zone.
Nymes Crude (92.09, -0.12%) managed to close above 92 and can now move towards 95-96 in the near term. Crude/Gold ratio is rising from the past few days but might as well hit a road block as Crude reaches 96 level, Gold seems ranged and hence the ratio can rise briskly to 0.06 (currently stands at 0.055) where it is expected to take resistance.
Brent (109.55, UNCH) continues its uptrend since mid June but has resistance ahead at 112.
Gold (1610.60, -0.14%) has been moving side ways since May and can come down to 1600 immediately. It has been in a range of 1525-1640 since mid May.
Silver (27.80, -0.23%) is also in a range of 26-29 and we are not sure on which side the range is likely to break.
Copper (3.38, -0.12%) can move up to 3.50 in the immediate term and has taken good support at 3.30 which is expected to hold. The trend is sideways and it has been in a range of 3.25-50 since June.
Dollar remains weak. The Resistance at 82.60 on the Dollar Index (82.28) we had mentioned yesterday is holding well and is keeping up the chances of a fall to 81.50-81.00. Only a strong rise above 83 will bring in strength for the dollar.
The Euro (1.2402) got good Support from the 200-MA on the 4-hr chart (currently at 1.2338) and is bullish for a rise to 1.2480-2530. Dollar-Yen (78.29) is retaining its 78.00-60 sideways range. The Euro-Yen Cross (97.09) is forming a Double Bottom and can see a sharp rise to 99.00-30 on a strong break/close above the 97.30-50 Resistance region.
Dollar-Swiss (0.9685) is not gaining strength to rise strong above 0.9700 and can fall to 0.9600 or even 0.9500. The Pound (1.5592) is retaining its broad 1.5450-5770 and the overall outlook is bullish for an upside breakout of this sideways range which would open doors for a rally to 1.6000+ levels going forward. Aussie (1.0586) remains strong but important Resistances are coming up at 1.0625 and 1.0690 which needs to be watched. The RBA's interest rate decision is due in some time and the market expects it to keep the rates unchanged at 3.50%.
In Asia, the USD-SGD remains lower and weak below its 1.2450-70 Resistance region for a fall to 1.2350-00. Dollar-Rupee had closed at 55.52/53 and can fall to 55.00-54.70 if it fails to rise past its Resistance at 55.70.
The Spanish 10yr yield has come down further to 6.73% and the chances of it moving further down towards 6.50% cannot be ruled.
The US Treasury yields remain lower and were flat yesterday. The 2yr, 5yr and 10yr yields are at 0.24%, 0.65% and 1.57%.
The 3-Month Mibor has dipped further to 9.17% and is keeping up the chances of moving down to 9%.
The RBA Meeting is due today and the market expects it to keep the rates unchanged at 3.50%
4:30 GMT or 10:00 IST RBA Meeting
...Expected 3.50% ...Previous 3.50%
2:37 GMT or 8:07 IST BOJ Meeting
...Expected <0.10% ...Previous <0.10%
14:00 GMT or 19:30 IST PMI CA
...Expected 51.7 ...Previous 49
No major data release yesterday.