Dollar Index breaks above the resistance at 106 and drags down Euro below 1.06. It is to be seen if the break sustains as it could bring in fresh targets of 107 and 1.05 for the Dollar index and Euro respectively.
EURJPY remains ranged while USDJPY can move up towards 149-150. USDCNY and USDRUB can head higher towards 7.35 and 96-98 respectively. Aussie is ranged within 0.6390-0.65 while Pound looks bearish towards 1.21 as it has broken below 1.22. EURINR may test 87.50-87 if it trades below 88 in the near term. USDINR could continue moving higher towards 83.30.
The US Treasury yields have risen back sharply. Looks like an extended rise can happen before the expected correction comes into play. The German yields have risen sharply and are coming closer to our targets.
The price action in the coming days will need close watch to see for a reversal anytime. The 10Yr and 5Yr GoI are back into their range and can move up within it. We retain our bullish bias for the yields to break the range on the upside and rise eventually.
Dow Jones has risen back and if sustains, can rise towards 34250-34300. Nifty may test its immediate support at 19500 before a bounce back can happen. DAX has declined below 15500 and looks vulnerable to fall further from here. Nikkei and Shanghai have fallen back but needs to sustain above 32200 and 3100 to avoid coming down further.
Commodities have declined and looks bearish for the near term. Brent and WTI have declined below $92 and $90 respectively and have room to come down further from here. Gold, Silver and Copper have scope to fall towards their immediate support. Natural gas has come down a bit but needs to sustain above 2.85 to avoid the danger of falling further.
