fx trading

EQUITIES
Strong surge in Equities worldwide, led by the USA, the Dow closing 391.47 points higher at 12654.36. It is now coming close to the upper end of the range on the Daily Candles, as seen on http://www.kshitij.com/graphgallery/djiacandle.shtml

Given that there are chances of the Dow rising past the 20-day MA soon (please take a look at the 2nd chart on http://www.kshitij.com/graphgallery/djiama.shtml), there seems to be room on the upside till 13000.

All Asian Stocks are up between 0.28% to 3.82%. Even Shanghai, which was on a long losing streak is up 2.69%. The Sensex too could move up to 16000 today, against a closing near 15,626.62 yesterday. Please click on
http://www.kshitij.com/graphgallery/sensexcandle.shtml

COMMODITIES
Gold (Comex June) fell to 876.30 yesterday on a resurgence in the Dollar and US stocks and currently trades near 889.20. The picture is not bright given that the market is trading below 920-900. For a more detailed report, please write to us at info@kshitij.com

Crude (Nymex May) was relatively more stable yesterday, falling to 99.50 before recovering to 102.50. Currently trades near 101.20.

CURRENCIES
The Euro fell to 1.5562 in the US session yesterday, after having failed to sustain a rise to 1.5897 on Monday. For the while, it has respected the BLUE trendline coming up from Feb-08 on the Daily Candles, but is trading below the RED trendline on the 3-day Candles. Take a look at
http://www.kshitij.com/graphgallery/eurcandle.shtml

The Euro’s fall has been attributed to the $19Bln write-down by UBS.

Dollar-Yen has moved up to test 102.00 (high near 102.17 seen). We had anticipated a rise to 101. There is some Resistance at 102, but if that is broken, we could see 103 also.

USD-CHF has risen to a high near 1.0142 alongwith USD-JPY. Cable fell to 1.9729 yesterday and currently trades near 1.9781, below the crucial level of 1.98 mentioned yesterday. It is to be seen whether it is able to recover above 1.98 today or not. The Aussie too fell to 0.9031 and is currently trading near 0.9090

We would expect Dollar-Rupee to open a little lower near 40.05 and 40.00 could be seen today on the back of higher global equities and a higher Dollar-Yen.