Morning briefing: EUR/USD is headed towards 1.0750

The Dollar Index is trading lower within its range of 106.50-105.50/105, while EUR/USD is headed towards 1.0750. EURJPY and USDJPY are trading near their immediate supports around 164 and 152 which if held, can bring them back towards the previous levels on the upside. Aussie can soon test 0.6580-0.66 before coming down towards 0.65, Pound is testing the resistance at 1.2550. If the resistance holds; can drag it lower to 1.24 in the near term. USDCNY is closed today. EURINR may remain ranged within revised range of 88.50–89.50/90. USDINR can continue to trade within 83.50-83.30 for now. The US NFP & Unemployment data releases would be important to watch today as they might impact the volatility in the markets for the next few sessions.

The US Treasury and the German yields have come down. Both the Treasury and the German yields have room to fall further from here. Thereafter they can rise back again. The US NFP and Unemployment data release today will be important to watch. The 10Yr and 5Yr GoI are poised at the lower end of their range. We will have to wait and watch if they are bouncing back today to retain the range or extend the fall further.

Dow Jones looks range bound. Dax can fall towards its lower end of the 18250-17600 range. Nifty has scope to test its key resistance before a corrective fall can be seen from there. Nikkei and Shanghai are closed.

Crude prices have managed to hold above their near term support and might bounce back soon. Gold, Silver and Copper have fallen and may remain bearish for the near term. Key focus is on the US NFP data today. Natural Gas can trade sideways between 1.85/1.90-2.10 for a while.

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