Morning briefing: EUR/USD trades below 1.1750

The Dollar Index can trade within 97.75-98.85 region for a while. EURUSD is trading below 1.1750 but a confirmed break below 1.170-1.165 will be needed to make the outlook further bearish. EURINR is trading within 105-106.25 region. EURJPY & USDJPY continues to hold the 182-185 & 154-158 range respectively for now. USDCNY is stuck between 7.00-6.9780 region. Aussie & Pound can target 0.68 & 1.36 respectively in the near term. USDINR has a scope to move towards 90.50 or slightly higher while it trades above 90.00. US ADP Employment is scheduled for release today.

The US Treasury yields are stuck inside a narrow range over the last few days. We have to wait for the range breakout. Broadly, the 30Yr is looking relatively stronger and can rise. We will have to wait and watch. The Germany Yields have come down further. Crucial supports are coming up which if broken can drag then lower in the coming days. The 10Yr GoI has dipped. But supports are there to limit the downside. The broader bias is positive and the yield has room to rise more.

The Dow and DAX are rising as expected but could face rejection from resistance near 49500 or 50000 and 25000 respectively. Nifty could test 26100-26000 before a possible bounce to 26500 later. Nikkei and Shanghai have dipped slightly and could face rejection from 4100 and 54000 respectively in the near term.

Brent and WTI have dipped and are likely to trade within $62–$58 and $59–$55 for now. Gold continues to inch up and can move towards $4,500–$4,600 in the near term. Silver needs a sustained break above $82 to extend gains towards $84–$86, else it can slip back to $78–$76. Copper must hold above $6 to rise towards $6.20–$6.30. Natural gas is supported near $3.40 and can bounce towards $3.60–$3.80 as long as this support holds.