Dollar Index is nearing resistance zone of 78.75-79.30 ranges; most of the asset classes especially the precious metals after the parabolic bull run sold off during whole week ; though double dip depression in the is still glooming the US economy it is oversold USD attracted investors, resulting in flight of capital from precious metals. It is also observed the funds flowed from over stretched precious metals and weaker equity markets to bonds and the Greenback.
Key equity index of the Dow Jones Industrials (DJIA) is expected to find support at 10700; whereas 11500-11600 ranges is expected to act as important resistance; trading consistently below 10700 would result in further extension of fall towards 9700 ranges. Historic correlation between DJIA and DX suggests further strengthening on the Dollar to 78.75-79.30 ranges
NYMEX November Crude after facing resistance at $90.00-$90.50 since last week slipped below critical support of $84.50 resulting in sell off to $80.00 ranges $75.50 may act as very important support.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3280 1.3380 1.3545 1.3600
USDJPY – 75.94 76.56 77.00
GBPUSD 1.5300 1.5390 1.5550 1.5630
USDCHF 0.8800 0.8970 0.9300 0.9360
EURJPY 101.50 102.20 103.70 104.30
AUDUSD 0.9550 0.9680 0.9860 0.9922
Disclaimer: This report contains the views of GFM Research Private Limited. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research Private Limited nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.