Vikram Murarka
Kshitij Consultancy Services
The Dollar Index can remain stable within 101.50-100.20 for now. Watch US ISM Manufacturing data release scheduled today. The Euro, while below 1.12 can trade within 1.12-1.11 for now. USDJPY and EURJPY seem to be rising well but could soon face near term resistance which could limit the upside. The Aussie needs to rise past 0.6950 to become further bullish while the Pound may trade within 1.3440-1.33. USDCNY is trading near the crucial support at 7. EURINR tested 94 on the upside but could not sustain and started coming off. For now, the range of 94-92.50/92 can persist for a while. USDINR has closed just below the crucial level of 83.80. The bias remains ranged between 83.70/80- and 83.40/50 for a while.
The US Treasury yields have inched up. Resistances can cap the upside and keep the broader downtrend intact. We expect the yields to fall further from here. The US ISM PMI data release today is important. A weak PMI number can drag the yield further lower. The German yields remain lower. The view remains bearish. More fall is on the cards. The 10Yr GoI has dipped. We expect it to sustain above the support and rise in the coming days.
Dow Jones has bounced back well while Dax and Nifty have fallen and could test respective supports before resuming to rise again soon. Nikkei has fallen but may remain ranged above support at 37500/37200 while Shanghai continues to shoot up with another gap up opening today, targeting 3400-3410 soon where a pause can be seen.
Most commodities look bearish. The rise in the Middle East conflicts which had led to the killing of the Hezbollah and Hamas leaders in Lebanon and the hitting of Houthi targets in Yemen has not received any response from Iran, which backs these three groups. It is yet to impact a supply disruption in Iran but despite the rising conflicts, Brent and WTI have dipped and can remain stable to bearish in the near term. Gold, Silver, and Copper have fallen and could continue to fall in the next few sessions. Natural Gas also looks bearish below crucial resistance near 2.9-3.00.
Visit KSHITIJ official site to download the full analysis
The above views are based on the latest available information. Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. While the views are proffered with the best of intentions, neither the author, nor the firm are liable for any losses that may occur as a result of any action based on the above. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.
Recommended Content
Editors’ Picks
EUR/USD stays sidelined below 1.1150 ahead of EU inflation data
EUR/USD struggles to gain any meaningful traction and treads water below 1.1150 in the European session on Tuesday. The pair stays on a slippery slope, as the US Dollar clings to recovery gains while the Euro remains wary of the October ECB rate cut ahead of the key EU inflation data.
GBP/USD trades with mild losses below 1.3400 ahead of US ISM PMI
GBP/USD trades on the back foot below 1.3400 in the European trading hours on Tuesday. Fed Chair Powell's less dovish remarks and a cautious mood keep the US Dollar underpinned ahead of US ISM Manufacturing PMI, JOLTS Job Openings and Fedsepak.
Gold price sticks to modest intraday gains, remains below record peak touched last week
Gold price (XAU/USD) regains positive traction on Tuesday and for now, seems to have stalled a two-day-old corrective slide from the all-time peak touched last week.
Three reasons why SUI could continue its ongoing rally
Sui is extending its gains, trading at $1.9 at the start of the new month after a sharp rise last month. This bullish momentum could continue, driven by a new all-time high in Total Value Locked, rising open interest, and an uptick in daily active addresses.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.