Friday, September 25, 2009

Gold and Forex report

Rupee : Rupee bounced back to 48.25 levels today and met exporters selling close to those levels. We expect rupee to be in the range of 47.90 to 48.50 in short term .It has major weekly trend support at 47.80-48.00 till which further weakness in rupee is still supported. ONCE we see the levels of 47.80 breaking the bias of rupee may change to bullishness. Rangebound. (USD/INR : 48.10).

Euro : The EURUSD failed to continue it's bullish momentum yesterday. The pair attempted to push higher, topped at 1.4801 but whipsawed to the downside, closed lower at 1.4660. Although we have serious threat to the current bullish outlook, I think it's too early for a bearish reversal scenario. Today we will pay attention to any reaction around 1.4595 area. Break below that area could be seen as bullish failure while rejection and bounce around that area should keep the bullish scenario intact and give us a good opportunity to place long position with tight stop loss below 1.4595 targeting 1.4800 area.(EUR/USD 1.4686) Bullish.

Sterling : The GBPUSD had a significant bearish momentum yesterday. The Sterling is in heavy pressure right now and staying below 1.6000 psychological level could hurt the Sterling really bad and might cancel the bullish scenario targeting 1.5800 and 1.5700 area. However, a rejection to move below 1.5900 could trigger an upside rebound testing 1.6113 resistance area but we think now is not the best time to place a long position. GBPUSD reached a significant resistance at 1.6400 levels.(GBPUSD 1.6000) Bearish

Yen : The USDJPY attempted to push lower yesterday, bottomed at 90.35 but further downside pressure was rejected as the pair closed higher at 91.24. The 90.20 support area once again proved to be a good support level at this phase. We prefer to sell around 92.50 and to buy around 90.20. Overall bullish. (range trading).(USD/JPY 90.63) Bullish

Aud : Aud maintains the bullish bias. Buying at dips close to important supports remains the best strategy in the current market scenario.Only a continuous move below 0.8400 would break the trendline and stand bearish for the pair. (AUD/USD -0.8690) Bullish

Gold : Gold prices plunged down to $990 due to the dollar strengthened on speculation Group of 20 leaders will agree to tighten capital requirements. Buy on dips is the strategy fom $990 levels for the target of $1005.(Gold - $997.40). Bullish

Dollar Index : The Dollar Index (basket against 6 currencies with EUR accounting for 57% of the basket) needs to break the levels of 78.70 to maintain strength again otherwise rangebound. It could bottom close to 75.50 levels. (Dollar Index - 76.85).Neutral

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