Morning Briefing: Dollar Index bounces from 104 dragging down Euro from resistance at 1.06

Good Morning!

Some recovery is seen in most currencies as Dollar Index bounces from 104 dragging down Euro from resistance at 1.06 as expected. EURJPY can test 145 before pausing while Pound and Aussie can test 1.20-1.1850 and 0.66/6650 respectively before again bouncing back to higher levels. Dollar Yen can test 138 before falling back to 132 while USDRUB seems to be slowly moving higher and can test 63-64 on the upside. USDCNY has bounced slightly but is bearish while below 7.05. USDINR can rise to 82.00-82.25/30 before coming off from there while EURINR can test 85 before again moving back towards 86.50 or higher eventually.

The US Treasury yields have risen back sharply but have resistances ahead that can cap the upside and keep the broader trend down. The German yields will need a strong follow-through rise from here to avoid a fall back. The 10Yr and 5Yr GoI are attempting to bounce but have to rise past their key resistances in order to turn the outlook positive. Else they can fall going forward.

Dow has fallen below 34000 but while above the support at 33500 bias remains bullish for a rise to our expected level. DAX too has declined a bit but overall view remains bullish to see a break above 14600 and rise further on the upside. Nikkei looks ranged. Shanghai is attempting to break above its crucial resistance at 3220. Nifty may continue to remain bullish while above the support at 18600-18500.

Brent and WTI may remain bearish while below the crucial resistance at $90 and $85 respectively. Gold has fallen back failing to break above 1820-1825. Silver too has fallen back but while above the support at 22.10-21.70, bias remains bullish for a test of crucial resistance on the upside. Copper is likely to trade within 3.7-3.90/3.93 for a while.