Morning briefing: Euro has support coming at 1.1300-1.1200
|The Dollar Index on a break below 99 can get dragged towards 98-96. The Euro and EURINR have supports coming at 1.13-1.12 and 96-95.5 region, above which we retain our view of seeing a rise towards 1.16-1.18 and 99. EURJPY and USDJPY are holding the ranges of 160-164 and 140-144 respectively. AUDUSD needs to rise past 0.645 level to test 0.66 on the upside. Else, it can continue to trade within 0.645-0.635 range. The USDCNY is trading near the support at 7.28. Failure to sustain above it can drag it further to 7.26/25. Pound is headed to the higher resistance at 1.35 region. USDINR is trading near 85 region. Need to see whether it holds above it or extends the fall to 84.80.50 in the coming sessions. US Case Shiller & US Consumer Confidence data release scheduled today.
The US Treasury yields are moving down as expected. The price action indicates that they can break their immediate support and see an extended fall in the coming days. The US PCE data release due for tomorrow will need a close watch. The German yields have risen further. This is just a corrective rise within the broad downtrend. The upside will be capped, and the fall can resume in some time. The 10Yr GoI has moved up well and can rise further to test its key resistance. The price action around the resistance will need a close watch.
The Dow is sustaining at higher levels and can move towards the upper end of its 37,800–41,000 range. The DAX has dipped slightly and needs a strong break above 22,600 to rise towards 23,000; otherwise, it could fall back to 22,000–21,800. Nifty rebounded sharply, keeping the broader bullish outlook intact, with a break above 24,360 likely opening the path towards 24,500–25,000. Nikkei remains bullish and is moving towards 36,500–37,000, where a medium-term correction may occur. Shanghai remains flat but holds above 3,250, keeping hopes alive for a gradual rise towards 3,350–3,400.
Crude prices can fall towards $64–$62 (Brent) and $60–$58 (WTI) in the near term. Gold is holding above $3,300 and could gradually rise to $3,400–$3,500, while a break below $3,270 may trigger a deeper drop. Silver found support near $32.50 and may head towards $34–$35 if this level holds. Copper remains under pressure below $4.95, with a downside target of $4.60–$4.40. Natural gas has risen as expected and may test resistance at $3.50–$3.60 before a likely pullback to $3.00.
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.