STOCKS
Dow (22841.01, -0.14%) may have some chances of testing 23000-23250 levels in the near term while Dax (12982.89, +0.09%) may continue to trade sideways and spend some more sessions without any actual movement.
Nikkei (21003.50, +0.23%) has made a multi-year high after breaking above crucial resistance near 21000. While the upside momentum continues, we could see a test of 22000 soon. However, we resume the exhaustion point for Nikkei on the upside is nearing and we could soon see a reversal of trend for the longer term.
Shanghai (3388.76, +0.08%) would gradually rise towards 3400-3420 in the near term. There could be some sideways consolidation within 3400-3360 levels before the price rises towards 3400 or above.
Nifty (10096.40, +1.12%) recovered sharply yesterday keeping the upside momentum intact. 9950-9980 seems to be an immediate support region and while that holds, a test of 10200 looks possible.
COMMODITIES
Gold (1295.94) may test initial resistance near 1300 which if holds could bring back the prices towards 1280; else a rise towards 1310 is possible in the near term while Silver (17.26) could be headed towards 17.50 soon.
Brent (56.49) and WTI (50.89) are trading slightly lower today. But there could be some scope of testing 57.45 in Brent and 51.50-52.00 in WTI in the near to medium term.
Copper (3.1150) is moving up as expected and could re-test levels near 3.15-3.18 in the next few sessions. Thereafter the price could pause for some time before again deciding on further movement.
FOREX
Bit of profit-taking/ consolidation in the Euro (1.1850) seen yesterday, down from 1.1878 to 1.1825, within overall uptrend targeting 1.1950+. Intra-day Support at 1.1825 and at 1.1800. Longs still preferred.
We had set a target of 92.50 on Dollar Index (92.96) yesterday, but that is possible only on break below immediate Support near the current level, which might not break easily.
Dollar-Yen (112.08) has drifted lower, trying to break below 112.00. Can see 111.80 and then 111.50, if successful. Appears ranged between 111.50-113.00 in the medium term.
Good Support near 132.50 on Euro-Yen (132.85), which can push the Cross up towards 134+, perhaps limiting the downside in Dollar-Yen to 111.80 in the near term. Let us see this.
Strong rise in the Pound (1.3275) over the last few days, coming close to our target of 1.33. Might drift into directionless sideways range in the near term now. Long-term Resistance seen in the 1.34-45 region.
Dollar-Yuan (6.5805) could come down a bit more towards 6.55 over the next few days, which might be decent levels to bounce from. Need to see if Dollar-Rupee (65.05/10) will find Support at 65.00 today or not.
INTEREST RATES
As mentioned yesterday, the German-US-10Yr Spread (-1.88%), has Support at -1.93%. Dips likely to be bought for eventual rise towards -1.85%.
Continued strong correlation between the UK-US 10 Yr Spread (-0.94%), which may have a small Resistance near the current level. Need to see how this behaves today.
The dip in Dollar-Yen (112.08) is being accompanied by a small dip in the US-Japan 10Yr Spread (2.26%), which has Support coming up near 2.22%. This could limit the downside in Dollar-Yen to 111.80-50. Suggests that the Euro-Yen could be a good Long.
