Kshitij Consultancy Services Team
Kshitij Consultancy Services
Good Morning!
The Dollar Index tested 105.74 on the upside before coming down and Euro rose sharply to test its resistance near 1.08 after the BOE kept the interest rates unchanged at 5.25% in its meeting held yesterday. USDJPY and EURJPY are rising well towards our mentioned targets of 157 and 168 respectively. USDCNY holds above 7.22 and can further test 7.23-7.24 in the coming sessions. Aussie is nearing the upper end of its range of 0.6550/0.6650, while Pound has bounced back well after the BOE meeting but could face rejection near 1.26 and come down towards 1.24/2350 before bottoming out in the medium term. EURINR could dip to 89.50/20 while below 90-90.2. USDINR is likely to hold within the range of 83.57/55-83.40/30.
The US Treasury yields have come down again failing to sustain the bounce. This keeps alive the chances of seeing a fall first to test their supports. The price action thereafter will need a watch for a reversal. The German yields are getting a follow-through rise after bouncing from their supports. This leaves the outlook positive to see more rise from here. The 10Yr and 5Yr GoI have to get a strong follow-through rise breaking above their immediate resistances in order to move higher. Else the yields can still fall to test their supports first and then resume the upmove.
Dow Jones is coming closer towards its resistance at 39500. Need to see if Dow breaks higher or falls from there. DAX has broken above its resistance and looks bullish to target further highs. Nifty has fallen sharply below its key support but we need to closely watch 21800 level. A break below it could be further bearish for Nifty. Nikkei looks ranged within 39000-37000 for a while. Shanghai has scope to test key resistance at 3200 in the near term before a corrective fall can happen.
Brent and WTI are heading up towards their immediate resistance while if holds can lead to a fall back in the near term. Gold and Silver have risen sharply above their upper end of the range and have scope to test 2400 and 29 respective. A rise past these is needed for increased bullishness, else the precious metals could witness a fall. Copper is moving up towards its sideways range. Need to see if it breaks on the upside or not. Natural Gas remains 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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