Morning briefing: Euro is headed towards 1.0900

Good Morning!

The dollar Index needs to bounce back from current levels to test 105+ on the upside, else it can fall towards 104, while Euro is headed towards 1.09. EURJPY looks bullish towards 172 while USDJPY looks muted below 158/157. USDCNY is headed towards 7.25/26. Aussie and Pound can soon rise to 0.67 and 1.28 respectively before topping out. EURINR can now rise back towards 90-91 in the coming sessions. USDINR above 83, has potential to rise back towards 83.35/40 in the near term.

The US Treasury yields have to break their immediate resistance to move higher and avoid a fall. It is a wait and watch situation. The resistances on the German yields are holding well. A corrective fall looks likely in the near-term within the overall uptrend. The 10Yr and 5Yr GoI are holding well above their supports. We can expect a consolidation before they move up again.

Dow Jones was closed yesterday. DAX and Shanghai have bounced back contrary to our view and might extend the bounce further. Nifty has key resistance at 23200 which if holds, can lead to a corrective fall. Nikkei lacks a follow through rise but bias is positive to see a rally towards 40000 while above 38000.

Crude prices have extended the bounce but needs to overcome the resistance at $85 (Brent) and $80 (WTI) respectively to bring back the bullishness. Else can remain vulnerable to a fall. Gold and Silver have risen above their resistance and while this break sustains, a further rise can be seen in the near term. Copper is holding well above support at 4.70. While above 4.70, a rise towards 5.00 looks possible. Natural Gas can come down to test its immediate support. Thereafter we need to see if it bounces back or breaks lower.

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