13 May 24. 0850 IST or 0320 GMT or 2320 EST
Good Morning!
The Dollar Index can rise to 106 while above 105 and Euro can fall to 1.07 while below resistance at 1.08. USDJPY and EURJPY need to hold below immediate resistances at 156 and 168 to decline from here. Else, the pairs could soon rise towards 157/158 and 169/170 respectively. USDCNY has risen with a gap up and can test 7.24 in the coming sessions. Aussie and Pound could range within 0.6550-0.6650 and 1.2450-1.26 respectively. EURINR could dip to 89.50 while below resistance at 90. USDINR is likely to hold within the range of 83.57/55-83.40/30 for this week.
The US Treasury yields have risen back again. They have to get a strong follow-through rise. Else a dip to test their support can still happen before the yields reverse higher strongly. The US inflation data release on Wednesday will be important to watch. The German yields have moved further up. The bounce from the supports last week is sustaining well. That keeps the short-term outlook bullish to see more rise in the coming days. The 10Yr and 5Yr GoI are struggling to get a strong rise. They remain vulnerable to fall from here and test their crucial supports first. Thereafter the yields can rise back again.
Dow Jones has risen above the resistance at 39500 and can now rise further towards 40000. DAX continues to move up. We must be careful as there is crucial resistance at the current level. A break above it, if seen, can open doors towards its next key resistance. Nifty has recovered a bit and might rise towards 22200-22500 while it sustains above 21800. Nikkei to trade sideways within 39000-37000 for a while with a bearish view. Shanghai has fallen but the downside seems limited to 3100.
Crude prices have dipped. Brent and WTI are overall bearish while below $85 and $80-81 respectively. Gold and Silver can fall while below the resistance at 2385-2400 and 29 respectively. Copper might trade sideways between 4.80-4.50. Natural Gas has declined but could find support near 2.1.
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