Euro has strengthened as Dollar Index has broken below its support at 102.25. EURJPY and USDJPY have scope to test their immediate supports before a bounce back can happen. USDCNY can see a dip to 7.20 while it stays below 7.25. Pound looks bullish for a test of key resistance at 1.2950. Aussie and USDRUB are likely to be range bound for some time. USDINR has declined as the resistance at 82.75/80 has held well and can come down more from here. EURINR has broken above its crucial resistance of 90.80 and may advance further in the near term.

Dollar Index (101.80) has broken below its support at 102.25. While the fall sustains below 102.25, a further dip towards 101.50-101 can be seen.

EURUSD (1.1015) has risen sharply breaking above the resistance at 1.0985-1.10. While this break sustains, a rise towards 1.11 looks possible.

EURJPY (154.99) has declined as the resistance at 157 has held well as expected. A test of 155-154 is possible before a rise back can be seen towards 157-158.

Dollar-Yen (140.90) has come down as the resistance at 143-143.50 has held well. A test of 140 looks likely before a bounce back can happen.

USDCNY (7.2261) has declined but has managed to hold above the support at 7.22-7.2150. A sustained break above 7.25 is needed to see a rally towards 7.30 or higher. Else we have to allow for a dip towards 7.20.

Pound (1.2869) is moving up towards 1.29 in line with expectations. A test of key resistance at 1.2950 looks likely before a reversal can happen from there.

Aussie (0.6682) lacks the strength to move up above 0.67. Only a strong break above it could pave the way towards 0.68. Else it may continue to trade within 0.67-0.66 for a while.

USDRUB (90.2750) has declined but has managed to sustain above 90. While above 90, we expect a range of 90-95 to hold for some time. Only a break lower could see a dip towards 88.

USDINR (82.57) fell to 82.57 yesterday as the resistance at 82.75/80 has held well. While below 82.80, view is bearish to see a dip towards 82.50/40 or even lower to 82.30.

EURINR (90.8831) has surged above its resistance at 90.60/80. A sustained move above 91 is needed to move up higher towards 92.

The US Treasury yields have dipped. They have to sustain above their support to avoid a fall and move up going forward. The German yields remain stable. The outlook is bullish to see a strong rise in the coming weeks. The 10Yr and 5Yr GoI have declined sharply. But supports are there to limit the downside and keep the chances alive of seeing more rise going forward.

The US 10Yr (4.00%) and (4.04) have dipped slightly. The yields have to sustain above 4% to keep alive the chances of a rise to 4.2% (10Yr) and 4.2%-4.25% (30Yr). Else they can fall to 3.8% (10Yr) and 3.85% (30Yr). Wait and watch.

The German 10Yr (2.63%) and the 30Yr (2.64%) yields remain stable. We retain our bullish view of the yields surging to 3% (10Yr) while above 2.5% and 3.1% (30Yr) on a break above 2.65%.

The 10Yr GoI (7.1337%) has come down below 7.15%. A test of 7.1% looks likely before a fresh rise to 7.2% happens.

The 5Yr GOI (7.1122%) has come down sharply. 7.1% and 7.07% are good support which can limit the downside and keep alive the chances of the rise to 7.15%-7.20%.

Dow has rebounded and has scope to move up further from here. DAX and Shanghai have risen further but need to break above their resistance to strengthen the momentum further on the upside. Nifty is bullish while above the support at 19300-19200. Nikkei has bounced back as the support mentioned at 32000 has held well.

Dow (33944.40, +0.62%) has bounced back. The 33500-34500 range is intact and the chances are high for the Dow to move up within the range.

DAX (15673.16, +0.45%) has risen further. But resistances are there at 15750 and 16000 which has to broken to turn the outlook bullish and avoid the fall to 15500-15000. It is a wait and watch.

Nifty (19331.80, -0.85%) is managing to hold above 19300. The bias is bullish to rise and break 19500 and target 19800-20000 going forward. 19200 and 19000 are supports below 19300.

Nikkei (32424.99, +0.73%) has bounced back as the support at 32000 seems to be holding well. While the bounce sustains, it can move up towards 33000.

Shanghai (3217.24, +0.42%) is moving up gradually towards 3225. A break above 3225 is needed to move up towards 3250 and to avoid the danger of falling towards 3150 or lower.

Brent and WTI are holding well below the resistance $ 79 and $ 75 respectively. Gold is likely to be range bound for some time. Silver and Copper are attempting to break above their immediate resistances.

Brent ($ 78.11) has come down a bit as the resistance at $ 79 seems to be holding well. Below $ 79, we expect it to continue its range trade within $ 79-$ 71 for a few more sessions.

As expected the resistance at $ 75 is holding well for WTI ($ 73.46) . This keeps the range trade intact between $ 75-$ 67.

Gold (1930.70) remains stable below 1940. A range of 1950-1900 is likely to hold for a while. Only a strong break above 1940-1950 could pave the way towards 1975-1980.

Silver (23.35) is attempting to break above 23.50. A sustained break above it could see a target of 24-24.50. Support is at 22.50.

Copper (3.7960) is attempting to break above 3.8. A sustained break above 3.8 could take it higher to 3.90. Support is at 3.73.

6:00 11:30 UK Unemp
Expn – …Expected 3.8% …Previous 3.8%

DATA YESTERDAY:
—————–
1:30 7:00 CN CPI (YoY)
Expn – …Expected 0.2 …Previous 0.2 …Actual 0.0

1:30 7:00 CN PPI
Expn – …Expected -5.0 …Previous -4.6 …Actual -5.4