Forex Technical Update

Rupee : Rupee met our target of 48.32 as expected. It has lot of resistances post 48.32 levels still the bias does not change since we are expecting dollar strength in overseas markets. Stay cautious since the move above 48 could extend till 48.60-72 levels. Look at covering import payments at 48.05(USD/INR : 48.10). Short term bearish & Medium Term Bullish

Euro: Euro plunged around 1.38 levels (1.38 is an important support and the neckline of the amazing head and shoulder pattern) but bounced back taking resistance at 1.4000 levels and again dipped down to sub 1.39 levels in the closing of US session . It is still maintaining a range bound move with the downward bias and breaking of 1.38 on a closing basis would push the pair to 1.3450. Daily trendlines have been consistently broken. ONLY and ONLY if it manages to maintain 1.4040 then we might have to reconsider the downtrend. (Eur/Usd:1.3917). Bearish

Sterling :Cable made a kind of double top formation at 1.66 levels and still moving in quite a volatile fashion in last 3-4 days showing both sides movement.of 250 pips . It took support at 1.6200 levels thrice and gave a gigantic move in the late US Session. (21 day daily moving avg support).Incase it breaks 1.6175 which looks quite probable it may head quite deep down towards 1.58 and 1.55 below again. Stay cautious incase 1.6440 breaks and holds.(Gbp/Usd: 1.6352). Short term Bearish to Neutral

Yen :Yen pair is trading sideways confined between the cluster support of 94 levels and resistance of 99.55. We should not initiate positions until this wide range breaks on either side. (USD/JPY : 96.52) Range-bound

Australian Dollar :Aussie is also correcting due to fall in commodity prices across. Only and Only if the pair stays below .7650 we could say the bearish trend has started for AUD. (Aud/Usd: 0.8024). Short term neutral

Gold :Gold is clearly bearish since its holding below its daily trend at $960. We can look at accumulating short positions at $ 935 till $957 for targets below $900. Gold- $933.90). Bearish

Dollar Index : DX bounced back from 79 levels (as expected) and is currently trading above 80-mark. The chart is turning bullish since the downtrend line has been broken and market is holding above 80 levels. Till we see the levels above 80 the index holds bullish. (DI- 80.96) Neutral

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DISCLAIMER

These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsible for any profits or losses that might occur, without recourse to us. 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.