Forex Technical Update

EURO: The Euro (1.2788) shooted up to as high as 1.2855 levels in yesterday's US Session post the data release from the US increasing the risk appetite in the market. It broke past its resistance of 1.2780 as short covering builded up as it consolidates some of the decline off this month's high. Support continues to be at 1.26 whereas the resistance is seen near 1.2840 levels(55 Daily EMA). Today's ECB is expected to leave the interest rate unchanged. Medium term tone: Overall bearish.

GBP: GBP/USD closed higher yesterday due to short covering and made a high of 1.5491 levels in the evening session. Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible near-term. Resistance holds near 1.5460 - 1.5480 levels. Today's PMI data would be eyed for the currency. Medium term tone: Neutral to bearish.(Spot 1.5446).

JPY: UsdJpy was volatile yesterday and is getting support at lower levels. A fall to 83.66 was held there, leading to a bounce to 84.66 overnight. We expect sideways movement between 83.90-84.70 levels. Resistance comes near 85.23 levels(21 daily EMA) whereas support is seen near 80 levels. Outlook for Yen: Neutral to Bullish - Target 80.

AUD: The Aussie rose yesterday due to strong retail sales numbers followed by the evening momentum pushing the currency upto 0.9110 levels. It is currently trading at 0.9066 levels. The resistance of 0.9150 - 180 levels should hold which can push the pair to the support of 0.90 levels. Overall Bias remains: Neutral .

GOLD: Gold($1246) rose yesterday to the highs of $1254 levels in the US session after the data release. Buying on dips is recommended targeting $1262 levels (high of 27 June) Medium Term remains- Bullish.

Dollar Index: Dollar index is currently trading at 82.54 levels as it 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. Support is seen near 82.45 levels which is likely to hold.