Morning briefing Euro slightly down to 1.1223

Dollar Index has risen to 100 taking Euro slightly down to 1.1223. Aussie, Pound and the Chinese Yuan trade weak against the Dollar and could target 0.6740/20, 1.29 and 7.25/30 respectively. EURJPY can target 157 as expected while USDJPY has risen to 139.30 and if it manages to break and sustain higher, it can move up towards 157. USDRUB may trade within 89-92 region while EURINR can hold below 93-92.50. USDINR can trade within 81.90-82.25/30 region unless there is further directional clarity on the pair.

The US Treasury yields continue to fall. The near-term outlook is negative, and the yields can fall more. The German yields have declined further and can fall more towards the lower end of their range. The 10Yr and 5Yr GoI can fall to test their crucial supports after which the price action will need a close watch to see if they are bouncing back or not.

Dow and DAX look bullish in the near term. Nifty could see a short-lived dip while it remains below 19800. Nikkei has risen well above 32500 and a further break above 33000 is needed to clear the path for further upside. Shanghai remains bearish for the near term.

Brent and WTI have rebounded and if the bounce sustains, a test of $81 and $77.50-$78 can be seen on the upside. Gold and Silver remain bullish for a rise to 2000 and 26-26.30. Copper remains subdued but the support at 3.80/3.75 is expected to limit the downside. Natural Gas has immediate resistance ahead at 2.67. Need to see if it breaks above 2.67 or not.

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