Kshitij Consultancy Services Team
Kshitij Consultancy Services
Good Morning!
The Dollar Index and Euro are headed to 105.50/106 and 1.07 respectively. USDJPY and EURJPY can rise towards 156/157 and 168 respectively. USDCNY has sustained well above 7.22 and can further test 7.23-7.24 in the coming sessions. Aussie can fall to 0.65 if it does not see an immediate rise from current levels while Pound has broken below 1.25 and could be headed towards 1.24/2350 before bottoming out in the near term. EURINR could dip to 89.50/20 while USDINR can continue trade within 83.57/55-83.40/30.
The US Treasury yields have dipped further. There is room to fall more from here to test their supports and then a reversal is possible. The German yields on the other hand have come close to their support. We expect the support to hold, and the yields can rise going forward. The 10Yr and 5Yr GoI bounced back yesterday. They will need a strong follow-through rise from here to avoid the extended fall and resume the uptrend from here itself. We will have to wait and watch.
Dow Jones has scope to rise towards 39200-39500. Thereafter we need to see if any fall back happens or not. Strong rise is seen in Dax yesterday and can extend the rise further towards its immediate resistance. Nifty has fallen sharply but might get support at 22200-22000. Nikkei has fallen as the resistance at 39000 is holding well and might fall further from here. Shanghai can rise towards its key resistance at 3200 before a corrective fall can happen.
Crude prices remains subdued but have managed to sustain above their support level. Need to see if the support holds and produces a bounce back or not. Gold is vulnerable to a fall while below 2350-2400. Silver and Copper have fallen back but downside could be limited to 27.00-26.30 and 4.50/4.47 respectively. Natural Gas looks bullish for the near term.
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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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