Dollar Index is headed towards 103-102 while Euro can test 1.09-1.0950 soon. Watch if EURINR faces rejection from resistance at 95 or moves higher to continue the current upward momentum to target higher levels of 96-97. USDJPY can extend dip to 145-144 support zone while the Dollar Index falls. EURJPY can dip within 162-156 region. AUDUSD coukd test 0.62 before moving higher. Pound also could have some scope to test support near 1.28/2750 before ascending towards 1.30 or higher. USDNCY can rise towards 7.28 while above 7.2250. USDINR has moved up well from support at 86.86. Now it can rally towards 87.30/50 soon.

Dollar Index (103.725) continues to look bearish while below 104 and can be vulnerable to extend the fall towards 103-102 in the near term.

EURUSD (1.0857) has scope to test 1.09-1.0950 before pausing for correction within the current upmove.

EURINR (94.877) has risen to test crucial resistance at 95. If this holds we may see a corrective dip towards 93 or lower in the near term. Alternatively a break past 95 if seen can take the pair higher to 97. Watch price action at 95.

EURJPY (159.66) seems to be in the corrective dip while below resistance at 162. A decisive break below 159 can bring in a downside target of 158-156 into the picture.

Dollar-Yen (147) continues to fall and could test the support region of 145-144 before attempting to bounce back.

USDCNY (7.2454) is trading above support at 7.225 and can attempt to rise back towards 7.28 and higher in the coming sessions.

Aussie (0.6286) had dipped slightly and trades lower than yesterday’s high of 0.6327. Aussie will have to sustain above 0.62 and keep moving higher to establish a steady upmove else can decline in the medium term. For now the 0.62-0.64 region seems to be holding well.

Pound (1.2889) could have some scope to test 1.2800-1.2750 support region before extending its rise towards 1.30 or higher soon. The overall trend looks bullish for the near term.

USDINR (87.3080) has beautifully risen from the near term support at 86.86 on Friday and has risen well yesterday. If the pair continues to trade above 87.25/30, it can soon head towards 87.50 on the upside.

The US Treasury yields have declined sharply. That keeps the danger alive of seeing more fall. The view is bearish. The German yields sustain higher. The bullish view is intact, and there is room to rise more. The 10Yr GoI is rising back. A strong follow-through rise from here can take it higher and will negate the fall that we have been expecting. We will have to wait and watch.

The US 10Yr (4.17%) and 30Yr (4.51%) Treasury yields have come down sharply. That keeps alive the chances of the fall to 4.1%-4% (10Yr) and 4.4%-4.3% (30Yr).

The German 10Yr (2.83%) and the 30Yr (3.12%) yields remain higher but stable. The bullish view is intact. The yields can rise to 3% (10Yr) and 3.3%-3.4% (30Yr).

The 10Yr GoI (6.7024%) has risen just above 6.7%. A rise above 6.71% will be bullish to see 6.75% on the upside. That will negate the danger of the fall to 6.6% that we have been expecting. We will have to wait and watch.

The Dow Jones has fallen below 42000 and remains vulnerable to seeing a fall towards 40000 or even lower. DAX is coming down to 22000. A break below 22000 would negate the rise to 23500 and extend the fall to 21500. Nifty fell below 22500. While below 22500, it can fall to 22000 and lower. Nikkei has fallen below 36000 before seeing a slight recovery. A confirmed break below 36000 would lead to a deeper fall to 34000-33000. Else it could rise to test the resistance near 37000-37200. Shanghai while above 3350, test of the immediate resistance 3380 looks possible.

The Dow (41911.71, -2.08%) has declined below 42000. The danger of a double top is giving an early sign of confirmation. That leaves the downside open for the Dow to see 40000 and even 39000-38000.

DAX (22620.95, -1.69%) is coming and the fall to 22500-22000 seems to be happening first. Failure to rise back from 22000 can drag it down to 21500 and will negate the rise to 23500.

Nifty (22460.30, -0.41%) has come down below 22500 failing to breach 22600 contrary to our expectation. Considering the sharp fall in the Dow overnight the expected rise to 22800-23000 seems difficult. There is a danger of seeing a fall back to 22000 and lower.

Nikkei (36402.37, -1.70%) has moved up from a low of 35987. Going ahead, a decisive break below 36000 would lead to a further fall to 34000-33000. Alternatively, if it sustains above 36000, then a rise to immediate resistance near 37000-37200 can be seen.

Shanghai (3363.7556, -0.08%) is heading towards testing the immediate resistance around 3380; however, while above 3350, the outlook remains bullish to rise past 3380 and move higher to 3400-3450.

Crude prices are hovering near their crucial support levels, and a sustained break below this could drag the prices down to $ 67-$ 65 (Brent) and $ 64-$ 62 (WTI). Gold is holding above its immediate support, and while it holds, the price can rise towards $ 2,900-$ 2,950-$ 3,000. Silver, Copper, and Natural Gas can continue to fall towards $ 32.0, $ 4.5, and $ 4.3-$ 4.2, respectively, in the near term.

Brent ($ 69.21) and WTI ($ 65.90) have reverted and are attempting to break below their immediate support levels. A successive break below this would extend the fall further towards $ 67-$ 65 and $ 64-$ 62. But as long as the support holds, we might see a rise towards the earlier mentioned levels of $ 71-$ 72 and $ 68-$ 70.

Gold ($ 2,900.60) is holding just above its immediate support. As long as this holds, we maintain our view of seeing a rise towards $ 2,950-$ 2,970-$ 3,000 in the coming weeks. Alternatively, a sustained break below $ 2,900 would open the gates for lower levels of $ 2,850-$ 2,800-$ 2,750, but this looks less likely for now.

Silver ($ 32.55) continues to fall and is likely to test $ 32.0 in the near term before a bounce back is seen towards $ 33.0-$ 33.5.

Copper ($ 4.66) has fallen to $ 4.60 as anticipated and can extend the fall further towards $ 4.50.

Natural Gas ($ 4.4420) the resistance near $ 4.60-$ 4.70 has held well as the price has dropped below $ 4.50. It can extend the fall further towards $ 4.30-$ 4.20 in the near term. Only a sustained break above $ 4.60-$ 4.70 would retain our earlier bullish outlook of $ 5.00.

23:50 05:20 JP GDP
… Exp – … Expected 0.7% … Previous 0.7%

DATA YESTERDAY
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No major data released yesterday.