Morning briefing: EUR/USD can head towards 1.1700-1.1800

The Dollar Index has breached below 99 over the growing expectations of rate cut from FED in its Dec-25 meeting. If the fall continues, a test to 98 or even 97 can be seen in the near term. EURUSD & EURINR can head towards 1.17-1.18 & 106 respectively in the near term if both the pairs sustained above current levels. EURJPY & USDJPY can trade within 180-182 & 158-154 region respectively. USDCNY can attempt to rebound towards 7.08-7.10 while the support at 7.06 holds. The Aussie is headed towards the resistance coming at 0.6650. Pound has surged above 1.32 and if sustained, can test 1.34-1.35 in the coming sessions. USDINR tested the high of 90.29 before closing lower. Immediate resistance is coming at 90.50 which can cap the upside for now.

The US Treasury yields fell and then has risen back again. The supports are holding well. That keeps the chances alive of seeing a rise in the near-term to test their resistance. The German Yields remain higher but stable. The bias is bullish to see more rise from here. The 10Yr GoI is attempting to bounce back from the lower end of its range. The sideways range can continue to remain intact for some more time.

Global indices show mixed momentum as the Dow stays firm with scope towards 49,000, DAX looks positive above 23,500 despite sluggishness. Nifty may dip to 25,850–25,800 before resuming its rise toward 26,400 and beyond. Nikkei needs a break above 51,000 to stretch higher toward 52,000 or else stays range-bound, while Shanghai remains weak and risks a test of 3,800 with its 4,000–3,800 range still intact.

Crude prices inched up but still risk a fall towards $61 for Brent and $58 for WTI before any rebound takes place. Gold stays bullish above $4200 with room towards $4400. Silver needs a break above $60 to extend gains toward $61–$62 or higher. Copper remains strong with scope to reach $5.50–$5.60, while Natural gas continues to advance towards $5.25–$5.50 before a possible pullback.