The Dollar Index came down sharpy on lower US Philifed Index and Trumps threat of more trade tariffs. A decisive break below 106 can open the doors for 105.50-105.00 on the downside. Euro if sustained above 1.05, can head towards 1.06. EURINR can trade within a narrow region of 90.50-91.50. USDJPY has limited upside to 152 and target of 148 is kept alive until further clarity. EURJPY has bounce well from support around 156 and can head towards 160 soon. AUDUSD and Pound needs to sustain above 0.64 and 1.26 to extend the rise towards 0.65/66 and 1.28 respectively in the near term. USDCNY is nearing the support around 7.225 region. USDINR had initially slipped near the support around 86.50 but while it holds target of 87.00-87.15 remains intact in the near term. US Existing Home Sales data release is scheduled today.
The US Treasury yields remain stable. They have to break their immediate resistance to go up. Else they can dip in the near-term and remain in a range for some time. The German yields remain stable. The view is bullish, and the yields can rise more from here. The 10Yr GoI is stuck in a narrow range within the broad range. The immediate outlook is unclear.
The Dow Jones has come down near 44000. A break below 44000 would lead to a further fall towards 43000-42000. DAX dipped further. It can come down to test 22000 levels. Nifty, while above 23800-23700, could rise past 23050 and move higher to 23300-23500; this looks possible. Nikkei is sustaining above 38500 and is approaching 39000. Shanghai is trading around 3350. Watch price action near 3350 to get directional clarity.
Brent and WTI are expected to trade within the range of $77–$73 and $73–$69, respectively. Gold and Silver remain bullish with targets of $3000 and $34. Copper has bounced back from its immediate support and could move further up towards $4.65–$4.70 in the near term. Natural Gas looks bearish, targeting $3.80 while trading below $4.50.
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