Morning briefing: Euro looks bearish toward 1.1400-1.1350
|The Dollar Index had slightly inched lower but the target of 101 remains intact while the support at 99.50 holds. Euro & EURINR looks bearish toward 1.140-1.135 & 101.50-101.00 respectively. EURJPY and USDJPY have scope to rise toward 178-180 & 154-155 if both the pair stays above 176 & 153 respectively. USDCNY continues to trade within 7.15-7.10 region. The Aussie is trading lower within its 0.660-0.645 range. The Pound has risen well but the target of 1.28 is kept open for now as long as the pair trades below the resistance at 1.3150. USDINR can hold the 88.50-88.85 range in the near term.
The US Treasury yields have come down sharply. But supports are there while above which the rise that we are expecting can still happen. The German Yields have dipped slightly. They have limited upside from here and are likely to fall eventually. The 10Yr GoI dipped as expected and then bounced back. It has to sustain above its support in order to move higher and avoid more fall.
The Dow and Dax have declined and have room to test 46500 and 23000 in the near term before pausing for a rebound. Nifty is also falling as expected and can test support near 25400 before rebouding. Failure to bounce back from 25400 can lead to further decline towards 25000 or lower. Nikkei dipped to 49073 yesterday but has managed to rise back today. View is bullish above 48000. Shanghai has broken above 4000 and looks bullish towards 4500-4100.
Crude prices stay under pressure with Brent slipping to $62.84 and WTI touching $58.83, both still vulnerable to $62 and $58 in the near term as softer demand weighs on sentiment. Gold continues to drift inside its $3900-4100 band, while Silver is trying to clear $48 for a possible push towards $50-52. Copper has bounced towards $5.10-5.20 within its broader $5.20-4.90 range, and Natural gas is firm after hitting $4.42, with room to stretch towards $4.50-4.60.
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