Forex Technical Update
The EURUSD is currently trading at 1.2594 levels after touching a high of 1.2712 levels. It would confirm a major top once we see a break below 1.26 on a continuous basis. It has been moving higher due to good bond auctions in eurozone countries , and poor US data overall and increased risk appetite in overall market seen last few days. It seems to be in a medium term correction phase with a overall bias is bearish below 1.30 levels. A sustained break of 1.25 would confirm that the upside bias would be over. We had suggested exporters to cover at every rise and we still maintain that. Our previous bearish targets 1.20 and below had reached few days back. (refer previous reports). (EURUSD - 1.2594).Neutral
GBPUSD is currently trading at 1.5020 levels and it should soon form a top or already a top would have been made at 1.5231 . Break of 1.50 on a consistent basis would confirm the scenario of! a top in place. Exporters can look at covers at current ! levels. Medium term importers hold for buying pound. (GBPUSD - 1.5020). Neutral
USDJPY is currently trading at 88.94 levels. YEN seems to be bottoming soon and heading towards a 90-92 . Cautious buys in the pair can be initiated. Yen Exporters may book partially. (USDJPY 88.94)
AUDUSD is currently trading at 0.8726 levels. It is still maintaining bearish bias till we see downside in commodities to maintain. It should encounter good resistance around 0.8800 levels. Bearish (AUDUSD - 0.8726)
Gold is currently trading at $1209 levels and its bias is bullish above $1160 dollars. It has reached our previous target of 1250 . We had recommended a steep correction in gold which we saw recently. Buy on dips is recommended with a stop below $1150 dollars. (refer previous reports). (Gold- $1209) Overbought.
Dollar index's broke past its important support at 85.20 levels and moved till 84.24 levels again. It seems to have taken an i! mportant support around 83.50 levels. Medium term target of 87-88 remains. (Dollar Index– 84.23) Overall Bullish .