Morning briefing: Euro could head towards 1.0750/1.0800
|The Dollar Index is headed towards 105.50 while the Euro has risen above 1.07 and could head towards 1.0750/1.08. EURJPY, Aussie and Pound have been rising well over the past few sessions and look bullish towards 166, 0.6550/0.66 and 1.2550/1.26 respectively. USDJPY trades below the immediate resistance at 155. USDCNY is bullish towards 7.25 while above 7.24. EURINR may remain ranged within 88.50-89.50/90 region. USDINR may hold between 83.30-83.50. A break below 83.30, if seen and sustained can take it down to 83.20/10.
The US Treasury yields remain stable. They have to sustain above their immediate support and get a strong follow-through rise from here to avoid a fall going forward. It is a wait and watch situation now. The German yields have inched up. The range breakout is sustaining. While this remains intact, a further rise is possible. The 10Yr and 5Yr GoI have come down. Though there is room to fall further, the broader trend is up. Supports are there to limit the downside and take the yields higher again.
Dow Jones can test 38700 on the upside. Thereafter we need to see if the rise extends further or turns lower from there. DAX and Nikkei have risen sharply above their resistance and while this break sustains, we can expect further upside in the near term. Nifty sustains higher but seems to lack strength. Might attempt to break above 22500 taking cues from global equities. Shanghai can remain ranged within 3100-3000 for a while.
Brent can rise towards its upper end of the range. WTI has risen towards $84. A break above it, if seen, can target $86. Gold and Silver has bounced but could face resistance at 2370-2380 and 28 respectively. Copper might trade within 4.35-4.50 for a while. Natural Gas to trade sideways within 1.50-2.00 for a while with a bullish view.
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