Dollar Index has dipped from 103.55 while Euro has moved up and could test 1.09-1.0920. Pound has moved up within 1.26-1.28 region while Aussie has moved up above 0.6350 and can hold for a few sessions. USDJPY and EURJPY have dipped and could fall some more in the next few sessions before a pause is seen. USDCNY is bullish towards 7.35/40 in the coming weeks while above 7.25. USDRUB fell sharply breaking below 92.50 but has bounced back from there. Trade within 88-96 can be seen in the very near term. EURINR is bullish above 90. USDINR may move up to test 83.30 but needs to fall from there to avoid further possibilities of a rise to 83.50 or higher.

Dollar Index (103.28) has come off sharply from 103.576 and while it holds the index can head lower towards 103-102.80 in the near term. Overall view is bearish below resistance at 104.

EURUSD (1.0887) has bounced well from 1.0850 and while the upmove sustains, a further rise to 1.0920 can be possible.

EURJPY (158.41) has come off from 159.35 contrary to our expectation of seeing a rise towards 160-162. However, there is support at 158 which needs to break to avoid a bounce back towards 159+ again in the medium term. Else there could be some hopes for a rise while above 158.

Dollar-Yen (145.47) has also fallen from 146.56 and could dip to 144 before again resuming the rise towards 148 in the medium term.

USDCNY (7.2784) rose above 7.30 but could not sustain higher and instead fell sharply from 7.3168 to current levels of 7.2784.A dip to 7.25 is possible but overall view remains bullish for a test of 7.35/40 soon.

Pound (1.2759) has moved up well from 1.26 and is headed towards 1.28. The 1.26-1.28 range continues to hold for now.

Aussie (0.6418) has managed to rise from 0.6350 and needs to hold higher to slowly rise towards 0.6450-0.65. Any break below 0.64-0.6350, if seen again can make it vulnerable to further decline towards 0.63/62.

USDRUB (93.8950) tested 91.52 yesterday before slightly moving higher now. The pair broke below our mentioned 92.50 but while below 95/96, there is scope for a slow fall towards 90-88.

USDINR (83.1525) did fall initially on possible RBI intervention but moved up by the end of the session to close higher at 83.1525. It would be important to see if the pair can dip in the near term towards 83 and lower or will rise sharply moving towards 83.50.

EURINR (90.4124) has moved up slightly while above 90 and if the rise holds, we may soon see a test of 91+ levels.

The US Treasury yields remain bullish and can rise further from here. The German yields continue to move up and are keeping intact our bullish view. More room left on the upside. The 10Yr and 5Yr GoI have risen, breaking above their intermediate resistances. Outlook is bullish to see more rise from here.

The US 10Yr (4.26%) and the 30Yr (4.37%) yields sustain higher. A test of 4.3%-4.35% (10Yr) and 4.4% (30Yr) is likely and the upside can extend even up to 4.4%-4.5% (10Yr) and 4.5%-4.6% (30Yr).

The German 10Yr (2.70%) and the 30Yr (2.78%) yields continue to move up. The bullish view of seeing 3%-3.1% on the upside on both the 10Yr and 30Yr remains intact.

The 10Yr GoI (7.2487%) has risen above the intermediate resistance at 7.24%. Bullish outlook is intact. 7.35% can be targeted.

The 5Yr GOI (7.2408%) yield has risen well above 7.2%. Bullish view is intact to see 7.45% on the upside. Intermediate resistance is in the 7.28%-7.3% region.

Dow Jones has declined sharply below 34700 but is likely to get support at 34300-34100. DAX and Nifty have fallen back keeping our overall bearish view intact. Nikkei continues to inch down and remain bearish for a fall towards 30500. Shanghai has rebounded and may rise further while it remains above 3100.

Dow (34474.83, -0.84%) has tumbled below 34700. Though there is room to fall more, 34300-34100 is a strong support zone from where a fresh rally is possible.

DAX (15675.90, -0.71%) has come down. Our bearish view of seeing 15500-15400 on the downside remains intact.

Nifty (19365.25, -0.51%) lacks strong buyers. It remains vulnerable to break 19300 and fall to 19000. Thereafter a reversal is possible.

Nikkei (31508.50, -0.28%) continues to inch down. Resistance is at 32000, below which, there is scope for a fall towards 30500 in the near term.

Shanghai (3165.84, +0.07%) has rebounded from a low of 3123.25. If it sustains above 3100, a rise towards 3225 is possible.

Brent and WTI have bounced back but need to break above their resistances at $ 85-86 and $ 81 respectively to negate the danger of falling again. Gold has scope to test 1900 before a bounce back can happen. Silver and Copper can rise towards 23.50 and 3.75 while above 22 and 3.65 respectively. Natural gas has to sustain above 2.55-2.50 to avoid coming down towards 2.4.

Brent ($ 84.23) has bounced back from the level of $ 83. However, it has to surpass $ 85-86 to negate the danger of a fall towards $ 82 or even lower to $ 80.

WTI ($ 80.00) has bounced back from a low of $ 78.99. But it has to overcome $ 81 to negate the chances of a fall towards $ 77 and to rise towards $ 85.

Gold (1923) looks stable around 1920. It may come down to test 1900 before a bounce back can be seen towards 1950.

Silver (22.89) has rebounded as the support at 22 seems to bee holding well. While above 22, there is scope for a rise towards 23.50. A range of 23.50-22 is expected to hold for some time.

Copper (3.7020) has rebounded sharply above 3.65 from a low of 3.6270 contrary to our view for a fall towards 3.55. While it sustains above 3.65, a test of 3.75 looks likely on the upside. A break above it is needed to open doors toward 3.80-3.90.

Natural Gas (2.6270) is hovering above the support at 2.55. While 2.55-2.50 holds, we can expect a bounce back towards 2.8-3.0 again. Only a decisive break below 2.5 could see an extended fall to 2.4.

23:05 4:35 UK Cons Conf
Expn -23 …Expected -29 …Previous -30

23:30 5:00 JP CPI
Expn 4.3 …Expected 3.1 …Previous 3.3

9:00 14:30 EU CPI (YoY)
Expn 5.7% …Expected – …Previous 5.5%

DATA YESTERDAY:
—————–
1:30 7:00 Australia Labour Force
Expn – …Expected 15.2K …Previous 31.6K …Actual -14.6K

9:00 14:30 EU Trade Bal
Expn – …Expected 3.8 …Previous 0.2 …Actual 12.5

12:30 18:00 US Philifed Index
Expn – …Expected -9.8 …Previous -13.5 …Actual 12.0