DXY index is trading slightly weak at 82.59 levels - ICICI Bank : Treasury Research

The DXY index is trading slightly weak at 82.59 levels as against previous close of 82.83 on the back of some profit booking this morning. Meanwhile, the greenback received support yesterday and hit an intraday high of 83.03, post the release of the better than expected Philadelphia Fed and jobless claims prints that added to expectations of tapering of the QE program by the Fed later this year. The Dollar gains were also boosted after Moody's revised higher US AAA sovereign credit rating outlook to stable from negative. The universal currency also received support from the positive corporate earnings release for Q2-2013. Technically, intraday trend for the DXY is bearish with support and resistance at 82.36 and 82.90 respectively.

EUR/USD: The common currency is trading slightly higher at 1.3137 levels as against previous close of 1.3109. The currency though traded weak in yesterday's trading session on the back of the release of weaker than expected current account balance data for the economy. Moreover, Dollar strength weighed on the common currency. The Euro also came under pressure on ECB's Asmussen's comments that the ECB policy will be expansionary for as long as needed. Yesterday, the Central Bank eased the collateral rules for its refinancing banks. The intraday trend for the Euro is bullish, with support and resistance at 1.3080 and 1.3170 respectively.

GBP/USD: The Sterling is trading at 1.5239 levels as compared to previous close of 1.5228. Meanwhile, the currency hit an intraday high of 1.5242 versus the greenback yesterday post the release of the strong retail sales release that showed a rise for the second consecutive month. The gains though were pared on account of Dollar strength. The intra day trend for the GBP/USD cross is bullish with support and resistance at 1.5190 and 1.5280 respectively.

USD/JPY: The Japanese Yen is currently trading above the psychological 100 mark after losing 0.83% versus the Dollar yesterday. The Yen has suffered the most on account of Dollar strength as the traders have pared short USD/JPY positions ahead of the Upper house elections in Japan on 21st July, with Abe widely tipped to win. This election will be crucial for the fate of any more structural reforms going ahead.Technically, the intra day trend for USD/JPY cross is bearish with support at 99.60 and resistance at 100.80.

USD/CHF: USD/CHF pair is currently trading lower at 0.9417 as compared to the previous close of 0.9447 owing to weakness in the Dollar amidst optimism over the continuation of the current pace of asset purchases by the US Fed. The Franc also gained as a widening in Switzerland's trade balance in June aided optimism over the economy's external sector. Meanwhile, the EUR/CHF cross is also trading marginally lower at 1.2375 as against yesterday's close of 1.2385. Technically, USD/CHF is expected to trade bearish with support at 0.9390 and resistance at 0.9470.

AUD/USD: The Australian Dollar is trading higher in the early trade today, at around 0.9184 levels as against yesterday's close of 0.9170 tracking rise in metal prices this morning. Gains in domestic stocks coupled with value buying following the sharp losses yesterday further aided the Aussie. Meanwhile, the currency had weakened by around 0.7% yesterday amidst concerns over domestic growth and increasing expectations of a rate cut by the RBA. Technically, we expect AUD/USD to trade bullish with support at 0.9130 and resistance at 0.9220.

USD/CAD: The Canadian Dollar is trading firm this morning around 1.0366 levels, adding on to yesterday's 0.3% rise as a two year high reading of Canada's wholesale sales in May aided some optimism over economic recovery. Weakness in the Dollar this morning coupled with rise in crude oil prices provided further support to the Loonie. Markets will now closely watch Canada's CPI data due to be released later today for further cues. Technically, we expect USD/CAD to trade bearish with support at 1.0330 and resistance at 1.0410.

Source : Equity Bulls

Keywords