TECHNICALS

FOREX EURO TECHNICALS:The pair entered a downside wave and we now see it trading above the 38.2% correction for the ascending channel that started on 4-12-2008 where we expect to see slight inclines today as far as the above mentioned level at 1.3890 remains intact. The current upside movement will be another attempt to retest the ascending channel that the pair had exited during last week's session yet we still believe to witness some volatility during this upside movement. Note that downside corrections are still possible. We depend on four hour closings due to the volatility in financial markets and the fluctuations on the intraday basis. From here we see that using the stop loss and confirming the breach of resistance and support levels is based on these closings to overcome the turbulence that resulted from the current global economic conditions
Recommendation Buy the pair above 1.3945 with targets at 1.4020 and perhaps 1.4090 and stop loss with a four hour close below 1.3890
The trading range for today is among the key support at 1.3730 and the key resistance at 1.4285
The general trend is to the downside as far as 1.5080 remains intact with targets at 1.2340 and 1.2225

COMEX GOLD TECHNICALS;The metal did reach our targets at 830 where we currently see the price undergoing a slight upside channel for some time yet we don't expect to see gold inclining above 866.95 or 884 at most. From here we believe to see upside movements for today to complete the bullish wave before entering a downside wave that could be steeper than the one seen during the previous week.
The trading range for today is among the key support at 784.90 and the key resistance at 884.50
The general trend is to the downside as far as 934.00 remains intact with targets at 649.20 and 615.60

COMEX SILVER TECHNICALS:Silver was able to trade within an ascending channel with a key support at 10.93. Since trading is above this level, we expect to see further inclines yet the above mentioned support level is weakening as it failed to halt further declines during the previous week. Therefore, any inclines seen today, will most likely be on an intraday basis
The trading range for today is among the key support at 10.34 and the key resistance at 11.72
The general trend is to the downside as far as 14.70 remains intact with targets at 8.05 and 7.60

NYMEX CRUDE TECHNICALS:Crude is still targeting 40.05 and perhaps extend to reach 38.50 yet trading is currently above 42.50 which is the previous bottom on 5-12-2008 which could open the way to 44.95 as an initial target. We currently see crude near the key resistance for the short term descending channel at 43.15 which is extending towards 43.50. Slight declines could be seen today yet the opportunity to breach the above mentioned level is still good which will help support crude to reach further upside targets
The trading range for today is among the key support at 35.85 and the key resistance at 46.00
The general trend is to the downside as far as 92.30 remains intact with targets at 34.85 and 32.25

INR UPDATE WEEKLY:USDINR (47.11) In the daily chart of Dollar Rupee we can see multiple top around 50.15 accompanied by negative divergence by the RSI indicator. This was followed by a sell off which has dragged prices below the previous bottom. Looking at the Fibo levels we can see that both 23.6% and 38.2% stands violated. Selling is suggested on rally. Outlook: Bias is bearish. Support Levels: 46.00/45.10 Resistance Levels: 48.20/48.50

INTRADAY:USDINR (47.59): Dollar Rupee has stagnated. The downfall momentum seems to have temporary stopped with the pair finding support at around 47.40. Action suggested is to sell towards 48.20 or on sustained move below 47.30. Support: 47.30/47.00/45.30. Resistance: 48.20/48.80-90