Dollarremained under pressure due to weaker job market data; on the other hand wehave a wild card. Over the past few weeks gold prices have started to slide as investorsbegan unwinding speculative positions. In US session it plunged as high as$40/oz.
Wecould reach a milestone today, as 4Q10 data should show that the US economy isback to its pre-crisis high where Dow has touched 12000 mark. The market willof course be watching the actual growth number, which creates risks thisevening.
USDINRcontinued to trade in a tight range of 45.45-45.77 from past six consecutivesessions. In today's session as long as a level of 45.77 is intact, biasremains on the downside till 45.64 (21 hourly EMA). However, a firm break of45.77 will give a room for the pair to depreciate till 45.85.
After touching fresh recentdays high at 1.3758 in yesterday’s session, euro is currently trading at1.3707. As long as the pair is supported at 1.3630 (horizontal line support),further up move in the pair is likely, wherein a retest of 1.3758 is likely.
Cable traded in a range of 112 pips to touch ahigh of 1.5991, before closing with doji formation at 1.5924. Daily stochasticis indicating up move till falling trend line resistance at 1.60, a down movewould remain restricted to 100 4-hourly EMA at 1.5820.
On the back of event risk, Japanese yen declinedby 118 pips from its high of 82.02. All short term stochastic are favouring forsell, a down move can be witnessed in the pair till its immediate rising trendline support at 81.95. On the upside, yesterdays high of 83.20 would remainintact for the day.
Swissfranc depreciated marginally in yesterday’s session to touch a low of 0.9481.Presently the pair is trading at 0.9450 with a strong support of 21 8-hourlyEMA at 0.9502. Thus further bearish trend cannot be ruled out in the pair witha target of yesterdays low at 0.9390.
DXY is currently trading at77.80 and expected to face a resistance at 78.20 (21 8-hourly EMA). Bearishbias for the Index is continued till 77 mark, supported by 4-hourly stochastic.