TECHNICAL CURRENCY VIEW FOR INTRADAY

TECHNICAL Impact
USD INR (JAN– Expiry)
US dollar is looking weak on charts hence selling is recommended in USD.
Sell around 54.0300 with a SL 54.1700 possible targets of 53.6700/53.5500/53.4300.

EUR INR (JAN – Expiry)
Euro might fall further as technically looking weak.
Sell below 72.2325 with a SL 72.3300 possible targets of 72.1200/72.1025/71.9200.
OR
Buy above 72.3300 with a SL 72.2325 possible targets of 72.4325/72.5700/72.7000.

Currency Headlines
Yen is gathering momentum before BOJ meet.
Yen is gathering momentum for an either side movement before Bank of Japan meet which might come up with strict reform to support their tumbling economy. One-week implied volatility on the dollar-yen rate, derived from option premiums, reached 16.9 percent, the highest since August 2011. It jumped 26 basis points to 16.54 percent. The yen touched 90.21 per dollar, the weakest since June 23, 2010, before trading at 89.93, 0.1 percent below the close yesterday. It sank as much as 0.4 percent to 120.71 per euro, the lowest since May 4, 2011. The European currency was at $1.3381 after climbing 0.7 percent to $1.3376.

Nifty view today-->18 jan 2013

Among Nifty options data of Jan series, maximum buildup among call strikes is witnessed at 6200 levels, which may act as resistance.
Nifty Jan 6000 Put strike witnessed short build-up.
Among Nifty Jan series options, short covering witnessed in 6000 & 6100 Call strike, while put writing is witnessed at 5800 strike.
Technology sector was up by 1.8% as stocks HCLTECH, INFY, TECHM & WIPRO witnessed long build-up.
Oil & Gas sector was up by 2.1%, long build-up witnessed in BPCL, HINDPETRO, IOC, ONGC & RELIANCE.
Automobile, Cement, Oil & Gas, Technology and Telecom sector witnessed maximum OI action.

Currency Headlines--->18 jan 2013

Currency Headlines
Euro Advances as Spain Sells Government Bonds While Yen Weakens
The euro advanced toward a 10-month high against the dollar as Spain’s borrowing costs fell at a 4.5 billion-euro ($6 billion) sale of bonds, underscoring demand for the region’s higher-yielding assets.

Europe’s shared currency climbed against all 16 of its major peers amid signs investors are returning to markets they deserted in 2012, with foreign investors buying more than 60 percent of the debt Italy sold two days ago. The yen fell after Economy Minister Akira Amari said his comments earlier this week that excessive weakening of the yen was harmful had been misinterpreted.

The euro appreciated 1.7 percent to 119.48 yen. Japan’s currency declined 1.1 percent to 89.36 per dollar.
Spain sold 2.409 billion euros of 3.75 percent 2015 notes at an average yield of 2.713 percent, down from 3.358 percent at the previous sale in December. It also auctioned securities maturing in 2018 and 2041 at lower yields.

Pound Falls to Nine-Month Low Versus Euro on Economic Outlook
The pound weakened to a nine-month low against the euro as investors favored assets in the 17- member currency region, betting the struggling U.K. economy will weigh on sterling.
Gilts fell for the first time in five days as the Debt Management Office sold 1 billion pounds ($1.6 billion) of inflation-linked securities maturing in 2029. The yield on U.K. 10-year index-linked gilts climbed from a record low. Bank of England policy makers held their target for bond purchases at 375 billion pounds last week. The central bank will publish new forecasts for growth and inflation next month that will inform their February decision.

Sterling depreciated 0.5 percent to 83.41 pence per euro at 11:44 a.m. London time, after reaching 83.46 pence, the weakest since April 3. The pound rose 0.2 percent to $1.6032, after dropping to $1.5976 yesterday, the least since Nov. 28.
The 10-year gilt yield climbed four basis points, or 0.04 percentage point, to 2.04 percent after falling to 1.98 percent yesterday, the lowest level since Jan. 3. The 1.75 percent securities maturing in September 2022 dropped 0.35, or 3.50 pounds per 1,000-pound face amount, to 97.485.

TECHNICAL INSIGHT
USD INR (Jan 13 – Expiry)
USDINR has shown weakness, as the pair broke 54.55 support. Though at lower level below 54.30, buying was seen. 17 Jan low of 54.26, is crucial support.
Sell near 54.85 SL 55 TGT 54.65/54.45/54.30 OR Buy near 54.30 SL 54.15 TGT 54.45/54.65/54.85

EUR INR (Jan 13– Expiry)
EURUSD seems in strong uptrend. However, the pressure of USDINR is seen on EURINR.
Sell near 72.98 SL 73.15 TGT 72.72/72.41 OR Buy near 72.28 SL 72.09 TGT 72.52/72.86/72.98

GBP INR (Jan 13 – Expiry)
GBPINR saw sharp slide. Though, some recovery was seen from lower levels. It remains under performer, among Western currencies.
Sell near 87.55 SL 87.70 TGT 87.25/87.02/86.75

JPY INR (Jan 13 – Expiry)
JPYINR remains the weakest of 4 pairs. But given the very High “Beta” and it has gap Up OR Gap Down opening.