The Dollar Index needs to hold below 104 to fall towards 102, while the Euro needs to hold above 1.08, otherwise would be vulnerable to see 1.07-1.06. EURJPY has risen from 158.72 and may rise towards 160 before falling back towards 158. Dollar-Yen has held well above 146 and may rise towards 148-150 in the near term. USDCNY continues to trade between 7.12-7.15/16. Aussie may fall towards 0.65 or lower with resistance at 0.67 holding. Pound may trade below 1.27 for a while. USDRUB is rallying as expected and is likely to test 92-94 on the upside. EURINR falls sharply but may find some support at 90. USDINR could trade in a range of 83.25-83.40.
US Treasury yields have bounced slightly. A break below their key supports, if seen, may extend the bearish bias. German yields continue to move lower in line with our expectations. They have room to fall further in the coming sessions. The 10yr and 5yr GOI fell yesterday and may trade in a tight range for some time before eventually breaking higher.
Dow Jones lacks strength but outlook remains bullish as long as it remains above support at 36000-35800. DAX is heading towards key resistance as expected. Need to see if it breaks higher or falls back from there. Nifty has broken above 20500 and may go higher from here. Nikkei has broken below its sideways range and looks vulnerable to fall further while below 33000. Shanghai remains bearish in the near term.
Crude oil prices have fallen towards their key support from where a possible bounce can be seen. Gold, silver and natural gas remain vulnerable in the near term. Copper looks bearish to break below its immediate support at 3.80 and fall further.
