The Dollar Index has risen a bit as the Euro dipped a bit on concerns of the current Hung parliament and political tensions. Overall, both are holding well within the range of 104.50-106.50 and 1.07-1.0850/09 respectively. Powell kept a cautious stance in his senate testimony, not impacting the markets much. Dollar-Yen and EURJPY are headed towards 162 and 175 respectively. Aussie & Pound needs to see a strong break past 0.6750 and 1.2850 to test 0.68 and 1.30 respectively else can see a decent dip from current levels. USDCNY is likely to continue to rise to 7.28 while above 7.27. EURINR has risen but could limit its upside to 91 from where a dip to 89.50-89 could be possible in the medium term. USDINR can continue to trade within its range of 83.40-83.50/60 in the near term.

The Dollar Index (105.125) managed to bounce well while above 104.50, keeping the near-term range of 104.50-106/106.50 intact. View is now bullish for an eventual rise to the upper end of the range.

EURUSD (1.0816) continues to trade above 1.08 despite the sharp bounce in the Dollar Index. As the Dollar Index moves higher, Euro could dip towards 1.0750/1.07in the near term. The immediate upside is likely to be capped below 1.09.

Dollar-Yen (161.49) and EURJPY (174.67) are headed towards our mentioned targets of 162 and 175 respectively which could be tested soon in the coming sessions. Thereafter whether the rise extends further or not will have to be seen. Watch price action closely around the mentioned targets.

USDCNY (7.2751) sustains well above 2.27 and could move higher towards 7.28 in the near term.

Aussie (0.6739) along with Pound (1.2788) need to see a strong rise past 0.6750 and 1.28/2850 to become further bullish in the near term towards 0.68 and 1.30. Else they are likely to fall back towards 0.6650 and 1.26. Watch price action for the next few sessions to see if the current rise will be sustained.

USDINR (83.49) remained stable within the 83.46-83.51 region yesterday. As such, a narrow range of 83.40-83.50 can hold within a broader range of 83.60-83.30 for some time.

EURINR (90.3051) continues to trade higher within the range of 89-91 which can persist for a while.


The US Treasury yields and German yields have risen and look bullish for the near term. The10Yr GoI can dip in the near-term to 6.96% before rising back again while the 5Yr GoI has broken below support and could be bearish for a few sessions unless an immediate pull back is seen.

The US 10Yr (4.310%) and the 30Yr (4.494%) yields have risen slightly but trades below 4.4% and 4.6% respectively. The immediate rise could take the yields towards 4.40% and 4.6% before turning bearish towards 4.2% (10Yr) and 4.4% (30Yr) in the medium term.

The German 10Yr (2.549%) and the 30Yr (2.736%) yields have also risen along with the rise in the US yields. The broader view remains bullish towards 2.7/2.8% (10yr) and 2.8/3.00% (30Yr).

The 10Yr GoI (6.9883%) has recovered slightly after testing a low of 6.9811% yesterday but remains stuck within 6.98% and 7%. It may continue to decline towards 6.96% before again rising back towards 7% in the medium term.

The 5Yr GoI (6.9734%) has clearly broken below immediate support at 6.98% and while that sustains, a fall to 6.96/94% cannot be negated in the coming sessions. Confirmation of a further dip will come on a break below 6.97%. The yield will have to bounce back sharply above 6.98% to prevent any further dip.


Dow Jones and Dax slipped further yesterday. Bias for Dow remains bullish while above 39600 while Dax may bounce back from 18200-18000 support zone. Nifty continues to hold on to its bullish move and could soon test 24500-24700 from where a corrective dip can be possible. Nikkei looks bullish for a test of 42000-43000 while Shanghai could trade above 2900 just now but needs to break above 3000 to turn bullish for the near term. A break below 2900 would trigger a fall to 2850-2800.

Dow (39291.97, -0.13%) dipped slightly, trading below 39500 and within the earlier range of 38900-39600. Bias remains positive to break 39600 and rise to 40000-40200 eventually.

DAX (18236.19, -1.28%) fell sharply to almost test immediate support near 18200. A bounce back from 18200 is needed for the index to protect near term uptrend and rise back towards else the index could fall further to 18000. As mentioned yesterday 18200-18000 is an important support zone to watch for.

Nifty (24433.20, +0.46%) is holding on to its uptrend as the index is inching up every day in a slow fashion. An interim resistance can be faced for a short corrective dip from levels near 24500-24700 in the next few sessions.

Nikkei (41723.34, +0.34%) rose sharply yesterday to 41769.35 before closing at 41580 but has resumed the upmove again today indicating bullish momentum. A test of 42000-43000 could be possible before a decline sets in.

Shanghai (2952.20, -0.24%) managed to bounce back from 2900 as expected but whether it would sustain the rise towards 3000 is to be seen. Trading lower today at 2952, it will have to break above 3000 to reinforce bullishness else could be vulnerable to fall to 2850-2800 on a break below 2900.


Crude prices have fallen further below immediate support levels, and the near-term outlook appears bearish as the decline persists. Gold has risen slightly and may target the 2450-2460 range while above 2340/60. Silver is hovering above its support level and is likely to trade sideways between 30.5-31.5 for some time. Copper and Natural gas continue their downtrend, with Copper potentially bearish to 4.5-4.4 and Natural gas aiming for 2.1-2.0 in the near term.

Brent ($ 84.56) has been falling sharply over the past 3-sessions. Breaking below $ 85, if the fall sustains, it can be dragged further down to $ 84/83 in the next few sessions.

WTI ($ 81.40) is also falling sharply and could fall towards $ 80/79 before pausing.

Gold (2375.20) has retained above 2370. While above 2340/60 it can gradually rise towards 2440-2460 again in the near term.

Silver (31.23) saw an initial fall to 30.79 but has managed to rise above 31. A sideways range of 30.50-31.5 can hold for now before rising towards 32-33 eventually.

Copper (4.5825) tested 4.55 yesterday. A near term fall to 4.5-4.4 looks possible in the next few sessions from where a bounce can be seen back towards 4.6 or higher.

Natural Gas (2.3440) fell to 2.344 despite seeing a rise to 2.448 yesterday. View remains biased to see a fall towards 2.1-2.0 before a potential rise towards 2.5 takes place.


No major data release today.

Data Yesterday
No major data released yesterday.