Tuesday, Jan 21

Asad Rizvi

Monday was a quite start to the week as New York was off, hence trading activity was seen in a narrow band with no unusual move. Today again market may wait to get some clue from the release of German ZEW economic numbers that will reflect institutional investors sentiment, Again its an important data, which is expected to show improving economic conditions in Germany, as European economy is too dependent on German growth, which will be followed by release of Euro zone ZEW economic sentiment. Later CBI data due to be released from UK and Redbook Index from USA may have minor impact on the market.

Interestingly, in a quiet environment as no major data is expected to to be released, market report by WSJ journalist that FED could trim its bond buying amount for second time that could be announced at the end of Jan 28-29 meeting could bring spark in the market. Watch if bond yield surges, as Japanese Yen has already started showing signs of nervousness. This should help in halting gold rise.

GMT 3:19 - GOLD @ $ 1252.90 = I would be cautious today as upside could be limited as gold has  resistance around $ 1256  and only break risks for test of $ 258-60 zones. However, bias should be on the downside and break of $ 1247 will encourage for  a test of $ 1240-43 zones.

GMT 3:26 - EURO @ 1.3550 = Euro needs to hold around 1.3565-70 levels for a test of 1.3510-20 zones. Break will encourage for move towards 1.3470-80. Upside break risks for possible test of 1.3610 levels.

GMT 3:32 - GBP @ 1.6427 = Cable is still in good demand, but needs to surpass 1.6475-85 levels for more gains. GBP will find buyer on dip. Break of 1.6405 will open gates or 1.6370-80. It should find support as long as 1.6330-40 is protected.

GMT 3:37 - JPY @ 104.65 = Bit tricky around 104.80-90. However, if breaks could test 105.10-20 zones. But if holds could test 104.20-30 zones and only break risks for 103.85.

GMT 3:40 - AUD @ 0.8815 = If fails to break 0.8830-40 could dip to test 0.8790-00 before up. Support 0.8770 should hold. Upside break will encourage for test of  0.8860-65 levels. 

DISCLAMER : The commentary/information presented is not intended for trading purpose. The idea is to exchange views with the members/readers. Therefore, I accept no responsibility or liability for any losses incurred due to position taking.