Morning Briefing: The Dollar Index trades just above crucial support at 109

Dollar Index trades just above crucial support at 109, a break or bounce from where will decide the directional movement for other currencies for the near term. Euro has resistance near 1.01/02 while Pound and Aussie have resistances near 1.16 and 0.6550 which need to break on the upside for further bullishness else can decline again. USDJPY looks bearish for a fall to 142. USDCNY is headed to 7.30/35 while USDRUB trades below 60 but needs to sustain lower for it to fall towards 57/56.EURJPY is bearish too while below 147. USDINR needs to hold above 81.80 to rise back towards 82.30/50. Instead a break below 81.80, if seen will be bearish for a fall towards 81.50. Watch price action near 81.80.

The US Treasury yields remain higher and can move up in the near-term. The US Consumer Price Index (CPI) data release tomorrow will be important to watch. It is important to see if the Core CPI is showing any sign of cooling down or not. The German yields can also rise in the coming days to test their key resistance and thereafter the price action will need a close watch. The 10Yr and 5Yr GoI are retaining their sideways range.

Dow has risen sharply but may face resistance at 33400-33500. DAX continues to rise and has room to move up further form here. Nikkei has risen towards 28000 and looks bullish to target further upside in the coming sessions. Shanghai needs a sustained break above 3080/3100 to strengthen the bullish momentum further on the upside. Nifty remain bullish for a test of 18400 in the near term.

Brent and WTI have declined sharply but has immediate support at $94-93 and $87.50-86.50 respectively. Need to see if Crude prices are able to hold above these supports or not. Gold has broken above the key resistance at 1700 and could target 1730-1740 in the coming sessions if the break sustains above 1700. Silver needs a strong break above the resistance at 21.50/70 to rise further in the near term. Copper seems to be lacking strength to move up above the resistance at 3.70.