Morning briefing: Euro may test 1.0750

The Dollar Index looks stable within its 106.5-105.5 range, while Euro may test 1.0750 before falling back into the range of 1.06-1.07. EURJPY looks bullish while above 166. Aussie has fallen a bit and could test the support at 0.6450/64 before attempting to rise back. Pound has been rising well over the past few sessions and looks bullish towards 1.2550/1.26. USDJPY has broken above 155 and if sustained can extend its rise towards 158 in the medium term. USDCNY is bullish towards 7.25 while above 7.24. EURINR may remain ranged within 88.50-89.50/90 region. USDINR could remain within 83.40-83.20 range for a while.

The US Treasury yields are getting a follow-through rise. While this sustains, there is room to rise more from here. The US PCE data release tomorrow will need a close watch. The German yields have come up to the expected levels much faster than anticipated. The price action in the coming days will need a watch to see if the rise is extending beyond the mentioned levels or not. The 10Yr and 5Yr GoI have bounced back. The broader view remains bullish. Supports are there to limit the downside in case of any intermediate dips.

Most of the Equities have dipped expect Nifty and Shanghai. Dow Jones, Dax and Nifty needs to rise past the resistance overhead for increased bullishness. Nikkei has fallen back but has immediate support at 37600-37500 region, which if holds, can lead to a bounce back. Shanghai can remain ranged within 3000-3100 for a while.

Crude prices looks range bound for the near term. Gold can fall if it remains below 2370. Silver and Copper is likely to ranged for a while. Natural Gas has fallen back but downside could be limited to 1.90-1.80.

---

Visit KSHITIJ official site to download the full analysis