The Dollar Index and Euro can trade within 106.50-105/104 and 1.0650-1.0750/08 respectively while Dollar-Yen and EURJPY are bullish towards 162 and 173/174. Aussie & Pound have risen well but remain within the sideways range of 0.6580-0.6720 and 1.26-1.28 respectively. USDCNY is nearing our target of 7.28 from where an initial dip looks possible. EURINR has risen well over the last 2-sessions but can trade within 89-90 region for some time while below 90. USDINR can continue to trade within its range of 83.30-83.67 in the near term.

The Dollar Index (105.724) and the EURUSD (1.0743) can continue to trade within an immediate range of 106.50-105/104 and 1.0650-1.0750/08 respectively, unless a decisive break is seen on the either side.

Dollar-Yen (161.64) and EURJPY (173.67) look stable above 161 and 173 respectively for now. The pairs can soon test 162 and 174 on the upside. Thereafter, whether the rise gets halted or extended further will have to be seen. Watch price action closely around current levels.

USDCNY (7.2727) is nearing our mentioned target of 7.28. Thereafter, an immediate resistance can be spotted around 7.2850/29 and higher at 7.30, the chances of which getting tested are high while above 7.26/27. Overall, the view remains bullish for the medium term. Watch for an initial dip from 7.28.

Aussie (0.6672) and Pound (1.2686) have managed to rise back within their respective ranges. Both currencies are likely to continue trade within their respective ranges of 0.6580-0.6720 and 1.26-1.28, unless a decisive break is seen on either side of the ranges to give more clarity on further direction from here.

USDINR (83.51) saw a high of 83.5625 yesterday before closing lower at 83.51. Near-term looks ranged between 83.67-83.30 but chances of seeing a rise towards 83.70-83.80 cannot be negated in the medium term.

EURINR (89.7207) has risen well over the last 2-sessions but has been holding below 90. If an immediate dip is seen from here, we may continue to see trade between 89-90 for the near term.

The US Treasury yields have dipped slightly after the Fed Chairman Powell’s comment stating that the central bank is satisfied with the progress in the inflation but will still wait to begin the rate cut process. The yields have room to rise from here before reversing lower again. The German yields remain higher and are bullish to see more rise. The 10Yr and 5Yr GoI remain stable. They have room to rise from here while they sustain above their immediate support.

The US 10Yr (4.43%) and the 30Yr (4.60%) yields have dipped slightly. While above 4.4%, the 20Yr can rise to 4.5%-4.6%. The 30Yr can rise to 4.7%-4.75% on a rise above 4.6%. Thereafter the yields can fall back again.

The German 10Yr (2.60%) and the 30Yr (2.80%) yields remain higher and stable. The outlook is bullish to see a rise to 2.8% (10Yr) and 3% (30Yr).

The 10Yr GoI (7.0112%) remains stable. While above 7%, a rise to 7.05%-7.06% is possible.

The 5Yr GoI (7.0027%) has dipped slightly. Support is at 6.98%-6.97% while above which the bias is positive to see 7.05% on the upside.

Dow Jones is stuck in a narrow range but has scope to see a breakout on the upside. DAX has fallen within its sideways range. A break on either side of the range is needed to get more clarity on future direction. Nifty lacks a strong follow-through rise above 24200. Need to see if breaks above 24200 or falls below 24000. Nikkei has bounced back sharply and may look to rise towards its key resistance before a pause can be seen. Shanghai has dipped failing to rise past 3000, but has near term supports which may hold and lead to a rise an eventual rise above 3000.

Dow (39331.85, +0.41%) has moved up within the 38900-39600. The bias is bullish to get a break above 39600 and rise to 40000-40100.

DAX (18164.06, -0.69%) has come down within the 18000-18400 range. A range breakout will give a cue on whether the DAX can rise to 18600-18800 or fall to 17700-17600.

Nifty (24123.85, -0.07%) sustains higher but seems to be struggling to get a strong follow-through rise 24200. While above 24000, the bias is positive to see a rise to 24500-24600. A break above 24250 can trigger this rise. A fall below 24000 will bring the Nifty under pressure to see 23800-23500 on the downside.

Nikkei (40454.50, +0.90%) has bounced back sharply above 40000 in line with expectations. A rise towards 41000 looks likely now before a pause can be seen.

Shanghai (2983.90, -0.44%) has fallen from a high of 3004.98. Support is seen at 2970-2950. While that holds, chances of break above 3000 and rise towards 3050 will remain intact.

Crude prices have dipped a bit but have immediate supports which may hold and lead to an eventual rise towards their key resistance in the near term. Gold, Silver and Copper have resistance overhead, which if holds, can lead to a fall back in the near term. Natural Gas remains subdued and looks bearish to fall further from here.

Brent ($ 86.65) has dipped after testing $ 87.64 yesterday. However support is seen at $ 85.50-85.00. While that holds, a rise $ 90-91 is still possible. After that, a corrective fall can be seen towards $ 85-80.

WTI ($ 83.16) rose to test $ 83.22 yesterday before coming off below $ 82.50. Immediate support is at $ 81.30-80.70 and then lower at $ 80. While these holds, a rise towards $ 84-85 looks possible in the near term.

Gold (2338.10) is stuck within 2325-2350. Resistance is at 2350-2360, while below which, a narrow range of 2360-2300 can hold with a bearish view. Only a decisive break above 2360 can take it higher towards 2400.

Silver (29.88) has come off a bit after testing 30.13 yesterday. Resistance is at 30.00-30.17. While these holds, a fall towards 29 and then towards 27.50 could be seen in the near term.

Copper (4.4350) is slowing inching up towards 4.5. It has to rise past 4.5 to reduce the downside risk of falling towards 4.24/4.20 and to rise towards 4.6-4.7. Else a fall back towards 4.3-4.20 cannot be ruled out.

Natural Gas (2.4490) remains subdued. Resistance is at 2.55-2.60. While below that, a fall towards 2.3-2.1-2.0 can be seen.

22:30 04:00 AU PMI
Expn – … Expected – … Previous -31.1

5:00 10:30 IN Services PMI
Expn 59.7 … Expected 60.4 … Previous 60.2

12:15 17:45 US ADP Emp
Expn – … Expected 156K … Previous 152K

12:30 18:00 US Trade Balance
Expn -73.3 … Expected -76.0 … Previous -74.6

Data Yesterday
…………..
9:00 14:30 EU Unemp
Expn 6.5% … Expected 6.4% … Previous 6.4% …Actual 6.4%

13:30 19:00 CA PMI
Expn – … Expected – … Previous 49.3 …Actual 49.3