EURO: The Euro (1.2705) gave a range bound trading session yesterday moving higher towards 1.2743 levels. Stochastics and the RSI are oversold but remain neutral and can push the pair near the support of 1.26. Resistance comes near 1.2780 levels whereas support continues to be at 1.26. Medium term tone: Neutral to bearish.

GBP: The Pound lowered till 1.5326 levels indicating bearish signal in the currency. Stochaastic and RSI are standing neutral to slight bearish bias in the pair. Resistance comes near 1.5458 (55 daily EMA) Today PMI data which is expected weaker can pressurize further on the pound. Medium term tone: Neutral to bearish.(Spot 1.5390).

JPY: Yen held strong yesterday making the low of 83.81 levels. Resistance comes near 85.23 levels(21 daily EMA) whereas support is seen near 80 levels. Closes below this crossing is needed to confirm that a short-term top has been posted. Outlook for Yen: Bullish Target 80 (Spot 84.34).

AUD: The Aussie gave away its major strength bottoming at 0.8856 levels, however recovered in the US session till 0.90 levels where the crucial resistance is standing. Strong rise in the retail sales data released this morning indicates healthy GDP and can give further boost to the Aussie. Overall Bias remains: Slight bearish (Spot 89.77).

GOLD: Gold($1247) rose yesterday in the US session after the dovish statement from the FED. Next target in gold would be $1262 levels(high of 27 June) thus going long on the lower levels near $1220 - $1230 levels is recommended Medium Term remains- Bullish .

Dollar Index: Dollar index is currently trading at 83.05 levels and edged higher to 83.56 last week but failed to sustain above 83.45 cluster resistance (38.2% retracement of 88.70 to 80.08 at 83.37) and turned sideway. A short term top is formed and some more sideway trading should be seen in near term. Sustained trading above 83.45 will confirm that correction from 88.70 has completed at 80.08 and will target 61.8% retracement at 85.40 at least

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These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsible for any profits or losses that might occur, without recourse to us. 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.