Dollar Strengthens as Markets Signal Mixed Trends in Forex and Commodities
The Dollar index has shown significant strength but must maintain levels above 102 to continue its upward momentum. Meanwhile, the Euro is trading below 1.13, signaling the beginning of a medium-term bearish trend. The USDJPY pair is expected to rise gradually towards 159, while EURJPY appears weak.
In other currency pairs, EURINR may have limited downside and could rebound soon, while USDCNY is likely to remain stable this week. The USDINR pair has potential to test 95.50, with key support at 96.35. A decisive break above 96.50 could turn bullish. The Australian Dollar and British Pound are holding above crucial support levels at 0.69 and 1.32, respectively.
US Treasury Yields have rebounded from Friday's lows, reinforcing a bullish outlook for further gains. German Yields, however, have dropped sharply and could test their support before resuming an upward trend. The 10-year GoI yield has also moved higher, with room for further increases. The Dow remains weak below 52,000 and could decline towards 50,000-49,800. The DAX needs to break 25,500 to rise towards 25,750-26,000, while the Nifty must sustain above 22,600 to target 23,000. The Nikkei remains positive above 70,000, aiming for 72,000.
Commodities are showing mixed trends: Brent and WTI crude oils are positive above support, with potential gains towards $105-$110 and $95-$100, respectively. Gold needs to hold $4,100 to rise towards $4,300-$4,400, while silver must sustain above $60 to recover towards $63-$65. Copper remains weak and could decline towards $6.55-$6.50. Natural Gas is expected to rise towards $3.10-$3.20 while staying above $2.91.