US Dollar trades higher against major currencies. Dollar Index needs to reverse back from 105 and Euro from 1.07 else the index can be bullish towards 106, taking Euro down to 1.06. Aussie and Pound are bearish towards 0.63 and 1.24 respectively. EURJPY and USDJPY can move higher towards 159-160 and 148/149 respectively while USDCNY looks bullish towards 7.35. USDRUB can rise while above 95 to eventually head towards 99-100. EURINR can be bullish above 89 while USDINR can aim to test 83.30. Need to see if RBI intervenes to prevent Rupee deprecation above 83.30.

Dollar Index (104.865) has immediate resistance near 104.90-105 which if fails to produce a decline can allow the index to move higher towards 105.50-106 in the medium term. Watch price action at 105.

EURUSD (1.0725) needs to bounce back from support at 1.07 to avoid further fall towards 1.06 in the medium term. Watch price action at 1.07.

EURJPY (158.37) is stable and could trade below 159-160 region with immediate downside limited to 157.

Dollar-Yen (147.67) could face rejection from 148-149 in the near term. Break below 147 can drag the pair down to 145/144 but while the Dollar remains strong, USDJPY may stick to higher levels extending to 149.

USDCNY (7.3228) continues to be bullish towards 7.38/40. Initial test of 7.35 looks possible within the overall uptrend.

Aussie (0.6369) and Pound (1.2496) are bearish to 0.63 and 1.24. pound has broken below our expected 1.25 and looks further bearish as US Dollar strengthens.

USDRUB (97.38) is bullish above 95 and has scope to test 99-100 soon.

USDINR (83.1375) has scope to rise to 83.25/30 before a pause is seen.

EURINR (89.1868) holds above 89 on falling Euro and higher USDINR. May remain above 89 for the near term.

The US Treasury and the German yields continue to move up. The outlook remains bullish and both the yields have room to rise further from current levels. The 10Yr GoI sustains well above its support and is bullish to rise more. The 5Yr on the other hand has to break its immediate resistance to gain momentum and rise further. Else it can continue to oscillate in the narrow range.

The US 10Yr (4.30%) yield has risen sharply while the 30Yr (4.37%) remains stable. The 10Yr can test 4.4% and the 30Yr can rise to 4.4%-4.5%. A corrective dip thereafter might be a possibility before the upside extends eventually up to 4.5%-4.6% (10Yr) and 4.6%-4.7% (30Yr).

The German 10Yr (2.65%) and the 30Yr (2.77%) yields continue to move up. Our bullish view is intact to see 3%-3.1.

The 10Yr GoI (7.2190%) has come down from 7.2319%. But while above 7.2%-7.18%, the view is bullish to see 7.35% on the upside.

The 5Yr GOI (7.1989%) is hovering at the upper end of its 7.16%-7.22% range. It has to breach 7.22% to gain momentum and clear the way for the rise to 7.3% and 7.45%.

Dow Jones has come down as expected and can fall further if it breaks below 34200. DAX remains bearish. Nifty and Nikkei remains higher and look bullish to target 19800-20000 and 33500 respectively. Shanghai can fall while it remains below 3175.

Dow (34443.19, -0.57%) has come down to test 34400 as expected. 34200 is a crucial level to watch. A break below it can see an extended fall to 34000-33800 before rising back to 35000 levels.

DAX (15741.37, -0.19%) remains lower below 15800. It can test 15500-15400 and the price action after that will need a close watch.

Nifty (19611.05, +0.18%) has risen back sharply from around 19500. While above the 19500-19400 support, the view remains bullish to see 19800-20000.

Nikkei (33190.58, -0.15%) remains higher above 33000. It may rise towards 33500 or higher while above 33000.

Shanghai (3144.07, -0.42%) has immediate resistance at 3175. If that holds, the index might break below 3125 and come down further towards 3100 or lower.

Brent and WTI will remain bullish while above the support at $ 89-88 and $ 85 respectively. Gold is near its immediate support at 1940. Need to see if 1940 holds or not. Silver and Copper remains bearish to come down further in the near term. Natural Gas continues to fall but is likely to get support at 2.5/2.45.

Brent ($ 90.51) remains higher. As long as it sustains above the support at $ 89-88, there is scope for a rise towards $ 93-95 in the near term.

WTI ($ 87.39) is holding higher above the support at $ 85. While above $ 85, a rise towards $ 90 is possible in the near term.

Gold (1943.50) tested 1940 yesterday as expected and is holding well above it for now. It has to sustain above 1940 to avoid the danger of coming down towards 1925-1920.

Silver (23.42) has declined below 23.50. While the fall sustains, a further dip towards 22.60-22.50 is possible before a reversal can be seen.

Copper (3.7875) continues to dip as expected. View remains bearish for a fall towards 3.70 before a bounce back can happens.

Natural Gas (2.5120) has declined towards 2.5. A test of 2.5-2.45 looks likely before a rise back can be seen towards 2.8-3.0.

22:30 4:00 AU PMI
Expn -21.1 …Expected – …Previous -25.6

0:30 6:00 Australia Trade Balance
Expn 11.1A$ …Expected 10.1A$ …Previous 11.3A$

9:00 14:30 EU GDP
Expn – …Expected 0.3% …Previous 0.3%

DATA YESTERDAY:
————-
1:30 7:00 AU GDP
Expn – …Expected 0.30% …Previous 0.37% …Actual 0.36%

9:00 14:30 EU Retail Sales
Expn -0.4% …Expected -0.1% …Previous 0.2% …Actual -0.2%

12:30 18:00 US Trade Balance
Expn -62.9$ …Expected -67.9$ …Previous -67.8$ …Actual -65.2$

14:00 19:30 BOC Meeting
Expn – …Expected 5.00% …Previous 5.00%