The Dollar Index continued to correct on the event of stronger asset classes across the globe especially the equities. Though 76.00 ranges are expected to again act important support, 79.80 ranges are expected to act as formidable barrier. Historic resistance in the Dollar Index is seen in the ranges of 79.50 to 80.20 to 81.30.
Key equity index of Dow Jones Industrials (DJIA) has found support again in the ranges of 10500-10600 ranges posted smart recovery to currently trade at 11400+ ranges; 11500-11680 is expected to act as intermediate resistance. Historic correlation between DJIA Vs DX suggests short-term top being posted in the USD and short-term bottom being posted in the Dow.
NYMEX November Crude after testing support of $75.50 posted smart recovery to trade currently at $83.50; daily close above $80.20 suggests short-term bottom has been posted with immediate targets being $86.00 and $88.40.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3460 1.3540 1.3790 1.3875
USDJPY – 76.00 77.40 78.00
GBPUSD 1.5510 1.5580 1.5730 1.5820
USDCHF 0.8780 0.9000 0.9260 0.9330
EURJPY 102.60 103.70 105.40 106.30
AUDUSD 0.9810 0.9900 1.0050 1.0145
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