Vikram Murarka
Kshitij Consultancy Services
Dollar Index has risen to trade strong while Euro heads lower. EURJPY may remain in a sideways consolidation while below 144.30 while USDJPY may continue to rise along with a strong Dollar Index and can target 138 while above 136. Pound has fallen contrary to our expectation and is bearish while below 1.20 for a fall to 1.18. Aussie may fall towards 0.6650 while USDCNY has broken above our mentioned level of 6.95 and may target 7.00 in the near term. USDRUB may trade within 76.80-72.00 for a while. EURINR has broken below 88 and may fall to 87-86.50 while the fall sustains. USDINR can trade within 82.40/50-82.85/90 region for the near term unless a break on either side is seen which would determine the next course of direction.
The US Treasury yields have risen back well after the US PCE data release on Friday. The US PCE rose 4.71% (YoY) in January from 4.6% in December. The yields remain bullish to break the immediate resistance and rise further. The German yields continue to rise and are keeping the bullish view intact. The 10Yr and 5Yr are managing to hold higher. The bias remains positive to rise, breaking above the immediate resistance.
Dow has fallen below the support at 33000 and looks vulnerable to come down further from here. DAX has broken the 15250-15650 range on the downside and looks bearish in the near term. Nikkei has come down slightly but overall bias remains bullish. Shanghai may continue to trade sideways with a bullish view of seeing a rise towards the upper end of the range. Nifty can break 17400 following the weakness in the global markets.
Brent and WTI are likely to test immediate resistances in the near term. Gold, Silver and Copper have fallen below their respective support levels and have scope to come down further from here.
Visit KSHITIJ official site to download the full analysis
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.
Recommended Content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.