Morning briefing: EUR/USD rises toward 1.1700-1.1800

The Dollar Index has recovered slightly but the targets of 98-97 are kept open for now. We retain our view on EURUSD & EURINR rising toward 1.17-1.18 & 106 respectively in the near term. EURJPY can trade within 180-182 region, while USDJPY need to see a rise past 156 to bring higher levels into picture. USDCNY is stuck within 7.06-7.08 region. Watch price action closely in Aussie to see whether the resistance at 0.665 holds or not. Pound has a scope to rise towards 1.34-1.35 while it trades above 1.33. USDINR can attempt to rise towards 90.50-91.00 as long as it trades above 89.50.

The US Treasury yields have come into their resistance zone. The price action in the next few days is important to see if the yields are managing to make a bullish breakout or not. The German yields have risen sharply. The yields are looking strong and can rise much more than we had expected earlier. The 10Yr GoI has risen sharply within its range. It can move up to test the upper end of the range from here.

The Dow and the DAX continue to look bullish while above supports at 47000 and 23000-23500 respectively. Nifty could have scope to test 25850-25800 before climbing towards 26300-26350 eventually. Nikkei needs a break past 51000 to target 52000, otherwise it may stay sideways between 51000-48000. Shanghai may hold in the 3950-3800 range.

Brent and WTI have reversed as expected and look set to stay within the ranges of $64-62 and $60-58 for now. Gold is steady above $4200 and may continue consolidating between $4200 and $4300 before attempting a move toward $4400. Silver stays weak below $60 with room to slip toward $56 before any recovery. Copper has dipped slightly but still carries scope to rise toward $5.55-5.60. Natural gas has slipped below $5 with support at $4.80 that needs to hold to avoid a deeper fall toward $4.50-4.00.