The Dollar Index turned lower after a rejection from 106, while the Euro rebounded as support at 1.0650 held well. EURJPY has room to test 162 from where a decline looks possible. USDJPY can test 151.63-152 on the upside. The Aussie and Pound look bearish below 0.6450 and 1.24 respectively. USDCNY is steadily rising and has room to go higher while above 7.25/26. USDRUB looks bearish below 94/93. USDINR may continue to trade between 83.20-83.30. EURINR may trade within 88.50-89.50 in the near term.
Dow Jones needs a sustained break above 34200 to negate the risk of a pullback. DAX has room to test 15400-15500 before turning lower from there. Nifty upside looks capped at 19500-19600. Nikkei has rebounded as support at 32000 held well as expected. Shanghai remains stable but outlook remains bullish as long as it holds above support at 3025.
US Treasury and German yields are coming down in line with our expectations. There is room for both yields to fall further from here to test their supports. After that a fresh rise is possible. The 10Yr comes down as expected and can go lower. But the 5Yr has support coming up. We will have to wait and see if that support holds or not.
Crude Oil and Natural Gas are near their key support which is expected to hold and produce a bounce from there. Gold, silver and copper remain bearish in the near term.
