The currency pairs are showing some recovery from last week’s moves. The Dollar Index has moved well above 102 and may test 103-103.50 before pulling back while the Euro may test 1.0850-1.08. EURJPY looks sable within 158-154 while USDJPY may continue to trade above 141. Aussie and Pound are slightly lower, but Aussie keeps some hope alive to see a rally from here soon. USDCNY could rise towards 7.15/16 while above 7.10. USDRUB could test 91. Rupee saw some strength on Friday but could move back towards 83.10/15 while above support region of 82.93-83.00 holds on USDINR. EURINR has room to fall towards 90-89.
US Treasury yields have continued to fall. Outlook is bearish to see further decline from here. German yields have come down to their key supports much faster than expected. We will have to see if they can bounce back from here or not. The 10Yr and 5Yr GoI have continued to fall. Outlook is bearish to see more decline.
Dow Jones remains bullish to target news highs. DAX is consolidating in a tight range but broader outlook is bullish to see a break to the upside. Nifty has room to test its resistance. Need to see if it falls back from there or continues to rise. Shanghai has room to rise as long as it remains above support at 2925. Nikkei is bearish as long as it remains below resistance at 33100-33500.
Crude oil prices remain bullish for a rise towards their resistance in the near future. Gold and silver have fallen back and can fall further if they stay below 2060 and 24.50 respectively. Copper needs to break above 3.90-3.92 to strengthen the bullish momentum, otherwise it can be range bound for some time. Natural gas continues to rise and has room to test its key resistance.
