Dollar Index and Euro may trade within 107-106 and 1.06-1.05 respectively, while EURJPY may be bearish below 159. USDJPY may test 149 before moving higher. USDCNY looks stable. Pound is heading towards 1.21 which if broken on the downside could be bearish towards 1.2050-1.20. Aussie can trade within 0.63-0.64 in the near term. USDRUB can hold above immediate support at 92.00 and rise towards 96-98. USDINR can trade within 83.00-83.30 with decent support in 82.80-83.00 region. EURINR can trade in the 87.30-88.50 range.
US Treasury yields are struggling to make a strong follow through above their immediate resistances. They may come down and remain range bound for some time. The outcome of the Federal Reserve meeting on Wednesday will be closely watched. German yields have eased slightly. But the view remains bullish to see more upside from here before a correction. The 10Yr and 5Yr GoI remain stable in their sideways range.
Dow Jones and Nikkei look vulnerable to a drop to their support before a possible bounce can happen. DAX outlook remains weak. Nifty has bounced back but needs to clear 19200 to ease the downside pressure. Shanghai needs to break above 3025 to add to the momentum.
Brent and WTI remain range bound. Gold and silver have rallied well and have room to rally further in the near term. Copper has room to test its key resistance before a reversal can be seen. Natural gas may fall towards 3.15-3.10.
