Wednesday, Jan 22

Asad Rizvi

Euro traded in a narrow range versus US Dollar, Pound Sterling, JPY and Aussie made good gains. Canadian Dollar got good bashing fearing deteriorating economic condition and in believe of softer policy stance caused by economic slowdown  due to weak exports and falling oil prices. I think bias will remain on the downside though rate cut will be to early decision, as Canadian Central Bank may wait for FED meeting.

There is very little to add as as there is no major release of US economic data this week. BOJ is likely to maintained its rate unchanged. In BOJ conference market will be trying to determine their thoughts on growth prospects and inflation. While BOE minutes and quite a few data due to be released from UK will provide direction about UK economy hat lost some of its strength in the later part of last quarter of 2013.

GMT 3:07 - JPY 104.36 = Key resistance for JPY is around 103.70-80 should hold or else could dip to test 103.20-40 zones. However, break of 104.80-90 will surely encourage for a tests of 105.20-40 zones. 

GMT 3:14 - GOLD @ $ 1242,30 = Gold my trade in a $ 10 band until NYK and my may find top around $ 1245-46 in Asian time zone before gradually easing to re-test $ 1234-38 zones. Upside break will encourage for a test of $ 1250 levels.

GMT 3:20 - EURO @ 1.3569 = Euro may find support around 1.3535-40 for a minor up move, break of 1.3595 is required to extend gains up to 1.3610-15 zones before dropping. 1.3510 is the major support level on downside. 

GMT 3:25 - GBP @ 1.6482 = The real challenge today will be to break 1.6510-20 levels that could threaten for a move towards 1.6575-95 levels. However,fall below 1.6400-10 will be sign of exhaustion and may Cable attack support level 1.6340-50.

GMT 3:28 - AUD @ 0.8866 = the expected up move has occurred, now Aussie needs to break 0.8910-20 zones, which could be tough and may fall to re-test 0.8820-40 zones. 

  

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.