Morning briefing: Euro can fall back towards 1.1150-1.1100 in the near term
|The Dollar Index has risen a bit after the US Durable goods came stronger at 9.9%. Now we need to see as to whether the rise extends further to 101.50-101.75 or not. PCE inflation — the Fed's favored gauge of price growth — is due on Friday. Euro can fall back towards 1.1150-1.11 in the near term while below 1.1250/1.1300. USDJPY needs to rise past 145 to turn bullish again while EURJPY can remain ranged within 160-164 for a while. The pound is holding well below our mentioned resistance of 1.3250 and can fall towards 1.13 or lower soon. Aussie failed to rise past 0.68 and a break below 0.6750 can trigger a fall to 0.67-0.6650. USDCNY needs to sustain above 7.12 to rise back towards 7.18. EURINR can fall back towards 93-92 in the coming sessions while below 94. USDINR may continue to trade within 84.00-83.75 region for the near term.
The US Treasury and the German yields have bounced slightly. But this is likely to be short-lived. Resistances are there on both the yields to cap the upside in case of a corrective rise. The broader view continues to remain bearish. The German and Treasury yields are likely to fall back and resume the downtrend going forward. The 10Yr GoI remains lower and stable. The bias is negative to break the support and fall eventually.
Dow Jones and Nifty have room to rise towards 41800-42000 and 25500. DAX is holding below its resistance for now. A clear break above its resistance is needed for increased bullishness or else it could fallback. Nikkei sustains above its support and while above it, the near term view remain bullish. Shanghai outlook remains bearish for a fall towards 2800.
Crude prices have risen well and looks further bullish for the near term. Gold and Silver have dipped slightly but chances of rise towards their key resistance will remain intact as long as they holds above the immediate support. Copper remains higher and looks bullish towards 4.4. Natural gas to remain range bound within 2.0-2.3 for some time.
Visit KSHITIJ official site to download the full analysis
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.