Morning Briefing: Dollar Index continues to look bullish
|Dollar Index continues to look bullish while Pound, Aussie, Euro, Chinese Yuan, Indian Rupee are looking bearish against the Dollar and can test 1.02/1.00, 0.64/62, 0.96/95, 7.20 and 81.50/80 respectively. High volatility is likely to remain for a few more sessions this week. UK announced last week to implement tax cuts and investment incentives to boost growth that took Pound down to 1.0354, breaking below the Feb’85 low. A maximum fall to 1.02/1.00 can be seen before a sharp reversal sets in. USDRUB has broken below 58 and can now test 56/55 before a bounce is seen again. USDJPY is bullish in line with the bullishness seen in Dollar Index.
The US Treasury yields continue to surge at the near-end while those at the far-end remain higher but stable. The 10Yr and 30Yr has resistances coming up which if holds can trigger a corrective fall going forward. The German yields remain strong and can continue to move up in the coming days. The 10Yr and 5Yr GoI have moved up as expected. The view is bullish, and a further rise is possible from here.
Dow could come down further from the current level if it fails to make an immediate bounce just now. DAX has scope to fall further towards 11000. Nikkei has fallen sharply and is likely to test key support at 26200-26000 in the near term. Shanghai has rebounded but needs to sustain the bounce above 3100 and extend further to negate a deeper fall in the coming sessions. Nifty could test 17200 on the downside.
Commodities have witnessed a sharp decline on last Friday. Brent have fallen towards $85 while WTI have fallen below $80. Both the Crude prices look bearish to fall further in the coming sessions. Gold, Silver and Copper have broken below their lower end of 1660-1700 (Gold), 19-20 (Silver) and 3.4-3.6 (Copper) respectively as expected and have room to come down further from the current levels.
Visit KSHITIJ official site to download the full analysis
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.