FOREX MORNING BRIEFING
The Dollar Index (100.28) has hit a 13-year high at 100.57 and the persistent strength doesn’t show any signs of weakness as long as it stays above 99.40-00. As noted yesterday, a minor correction from the current levels can’t be ruled out but the strong momentum can push it to 102-104 against any preference.
Dollar-Yen (108.80) has registered a high at 109.76 for the week so far but if the current correction remains shallow and contained to 107.70-40, then another surge to 111-112 levels can materialize.
The Pound (1.2420) remains in the 1.27-1.2350 region with small daily candles, suggesting contraction of volatility and the possibility of a revisit to 1.2500-50 levels.
Euro (1.0699), after a failure to rise above our resistance of 1.08, is closing towards the long term support zone of 106-105 which may hold for a few days before the next major move emerges.
The Aussie (0.7479) has broken below the support of 0.7500-0.7489 but the levels of 0.7420-00 may hold for the rest of the week ad push it back to 0.76 levels once more before the major downtrend resumes.
COMMODITIES MORNING BRIEFING
Gold (1227.29) is almost stable near 1210-1220 region and could possibly continue to move sideways for some time. 1200-1210 is an important support region as mentioned in our earlier reports and could hold in the near term. A break below 1200 would be difficult just now.
Silver (16.97) is also stable near current levels. There could be some scope of testing 16.28 on the downside before bouncing back from there. But for now 16.60 seems to hold well.
Copper (2.4570) continues to fall and could test support near 2.40-2.35 in the near term.
Both Brent (46.51) and WTI (45.46) rose sharply yesterday and have now paused near current levels. Near term looks bullish towards 48 and 47 respectively.
Brent-WTI ratio is falling and could test support near 0.5 from where a bounce back to levels near 2 could be seen.