Dollar Index may hold above 101.75 and move up towards 102.50 or slightly higher while Euro could trade within 1.0940-1.1020. Pound has moved up to the upper end of the 1.26-1.28 range and needs to see if it falls back or attempts to move higher. Aussie can fall back to 0.65 while below 0.66. USDCNY can test 7.25. USDRUB has fallen and can test support at 92 before moving back towards 97/98. EURJPY can trade within 155-158. USDJPY can test 144 while above 143. EURINR can trade within 90.50-91.50 for sometime while USDINR can attempt to break higher while above 82.70.

Dollar Index(102.29) is trading above 101.75 and has scope to rise to 102.50 or slightly higher in the next few sessions.

EURUSD(1.0987) my trade within 1.1020-1.0940 for 1-2 sessions.

EURJPY (157.44) is rising towards 158 as expected and if it manages to break above 158, it can extend towards 159.

Dollar-Yen (143.30) has scope to move up towards 144 before pause is seen. A break above 144, if seen can be further bullish to 145.

USDCNY (7.2083) has moved up well and while above 7.20, it can target 7.25 in the next few sessions.

Pound (1.2761) has moved up to the upper end of the 1.26-1.28 range. It would be important to see if it manages to break above 1.28 to rise further towards 1.29 else can fall within the 1.26-1.28 region.

Aussie (0.6552) could not sustain above 0.66 and has instead come off sharply from levels below 0.6620. A fall to 0.65 can be on the cards this week.

USDRUB (95.6097) has fallen sharply from 97 and can test support near 92 before again moving up towards 96-97 in the medium term.

USDINR (82.7438) limited its downside to 82.70 and while above 82.70, the pair can attempt to rise towards 82.90-83.00 in the near term.

EURINR (90.99) has fallen from 91.3060 and can trade within 90.50-91.50 for the next few sessions.

The US Treasury yields have inched up. A further rise from here can ease the downside pressure and take the yields higher. The German yields have risen back thereby reducing the danger of seeing more fall. A strong follow-through rise from here will be very bullish. The 10Yr and 5Yr GoI are holding higher and are keeping up the bullish view intact. There is room for more rise.

The US 10Yr (4.06%) and the 30Yr (4.23%) has inched up slightly. We repeat, the 10Yr has to sustain above 4% to break 4.2% and rise to 4.3%. The 30Yr can test 4.3% from here.

The German 10Yr (2.60%) and the 30Yr (2.69%) yields are rising back. A strong follow-through rise from here will be bullish to see 3%-3.1% on the 10Yr and 30Yr.

The 10Yr GoI (7.1981%) sustains higher. Bullish view is intact to break 7.2% and rise to 7.3%-7.35%. Supports are at 7.18% and 7.14%.

The 5Yr GOI (7.1987%) has potential to target 7.4%-7.45% while it sustains above the 7.15%-7.1% support zone.

Dow has risen back sharply thereby reducing the danger of the fall to our expected level. DAX and Nifty needs a strong follow-through rise above 16000 and 19700 to avoid the danger of falling deeper form here. Nikkei has rebounded and may look to rise further in the near term. Shanghai can come down to test 3225.

Dow (35473.13, +1.16%) has risen back sharply thereby reducing the danger of the fall to 34500 mentioned yesterday. A sustained rise above 35600 will negate the same and will open the doors to see 36000.

DAX (15950.76, -0.01%) holds above 15800 but is stable. As mentioned yesterday a strong follow-through rise above 16000 from here will negate the danger of falling to 15500 and take it up to 16200-16400 again

Nifty (19597.30, +0.41%) has moved up. However, a strong break above 19700 is needed to open the doors for 20000 and negate the danger of falling to 19200-19000.

Nikkei (32377.50, +0.35%) has bounced back from a low of 31830 contrary to our view for a test of 31500. If the bounce sustains, it may rise towards 33500.

Shanghai (3253.06, -0.48%) is attempting to break below the lower end of the 3250-3325 range. A decisive break below 3250 could lead to a fall towards 3225.

Crude prices remain bullish for a test of their key resistance in the near term. Gold and Silver have declined but can get support at 1960-1950 and 23 respectively. Natural gas has scope to test 2.8 on the upside. Copper has come down towards the support at 3.8. Need to see if it holds above 3.8 or not.

Brent ($ 85.57) appears ranged within $ 85-$ 87. As long as it sustain above $ 85, there is scope for a test of $ 88-89. Lower support is seen at $ 84.

WTI ($ 82.20) is lacking strength to move up above $ 83. Support is seen at $ 81, above which, view is bullish for a rise towards $ 84-85 before a reversal is seen.

Gold (1968.20) has declined failing to rise above 1980. Support is at 1960-1950. While above 1950, a range of 1950-1985 could persist for some time.

Silver (23.22) has fallen sharply as the resistance at 24 has held well. Key immediate support is at 23. If that holds, we can expect a trade within 23-24 for some time.

Copper (3.8220) has come down towards the lower end of the 3.80-3.95 range. Failure to sustain above 3.8 can drag it down to 3.75-3.70.

Natural Gas (2.7170) has risen sharply, breaking above the resistance at 2.62. While above 2.60/2.62, view is bullish for a test of 2.8.

12:30 18:00 US Trade Balance
Expn – …Expected -65.1$ …Previous -69.0$

DATA YESTERDAY:
—————–
No major data release yesterday.