Vikram Murarka
Kshitij Consultancy Services
Dollar Index and Euro are likely to remain ranged within 105.50-107.50 and 1.02-1.05 region respectively while EURJPY can test 146 before a rejection is seen. Pound can fall to 1.18/16 while below 1.20 while Aussie has scope to re-test 0.68 within the 0.68-0.66 range. USDJPY is likely to be ranged within 137-142 while USDCNY is headed towards 7.15/20 before a fall to 7.10/05 is seen again in the medium term. USDRUB is stuck within 59-62 while USDINR may face rejection from either 81.75 or higher at 82. EURINR can limit its rise to 85 and see a corrective dip in the next 2-3 sessions.
The US Treasury yields have risen back across tenors but are likely to be short-lived. We expect the yields to extend the fall in the coming days. The German yields remain lower and stable. The view is bearish for the yields to fall more from here. The 10Yr and 5Yr GoI are managing to hold above their support. But they have to rise past their immediate resistance to turn bullish and avoid a deeper fall from here.
Dow has risen back from a low of 33239.75 keeping the bullish view intact of seeing a topside breakout above 34000 in the coming sessions. DAX has bounced back and has scope to break above the intermediate resistance at 14450 and rise further on the upside. Nikkei continues to be ranged. Shanghai has rebounded but may remain bearish for a fall on the downside while below the resistance at 3150. Nifty has scope to rise past 18400 and move up further while above the support at 18200-18100.
Brent and WTI are coming down to test their key supports, which if holds, can produce a bounce back from there. Gold, Silver and Copper have declined sharply and have room to come down further from the current levels.
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The above views are based on the latest available information. Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. While the views are proffered with the best of intentions, neither the author, nor the firm are liable for any losses that may occur as a result of any action based on the above. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.
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