The Dollar Index continued loosing streak on the event of stronger asset classes especially the equity bourses; the short-term trend is still weak till the Dollar Index does not close above 78.50 on daily basis. Though 76.00 ranges are expected to again act important support in medium term. 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.
In NYMEX November Crude though the short-term bottom has been posted with immediate targets being $86.00 and $88.40, now that the prices are nearing the resistance zone, mild profit taking may be witnessed.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3580 1.3635 1.3850 1.3875
USDJPY – 76.00 77.40 78.00
GBPUSD 1.5580 1.5650 1.5770 1.5800
USDCHF 0.8780 0.8920 0.9060 0.9100
EURJPY 104.20 105.00 106.40 108.00
AUDUSD 0.9900 1.0050 1.0270 1.0370
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