29-Aug: Daily FX perspective – GFM Research

The US Dollar slipped of yesterday’s European session highs to close weak, 81.00-81.20 is posting as support; daily close below 81.00 would lead to further depreciation in the USD across the board. Yesterday the benchmark equity index of Dow Jones Industrials (.DJIA) has traded in correlation with the Dollar Index as against inverse correlation exhibited historically. The benchmark equity index is currently trading at 13104 ranges with 13200-13300 still acting as critical resistance zone.

Historic correlation between DX Vs DJIA suggests the short-term and medium-term trend being sideways where as the long-term trend is still dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis.

NYMEX Crude is trading weak after slipping again from $97.50 ranges to currently trade at $96.05 ranges. Historic resistance is seen in the ranges of $98.20 ranges, further rally to $102 ranges can be expected on daily close above $98.40.

FX Pair            Trend           Resistance 2    Resistance 1    Support 1    Support 2

EURUSD       Sideways-Up            1.2675            1.2620             1.2535          1.2460
USDJPY       Sideways                   78.85              78.65              78.30             77.90
GBPUSD      Sideways                  1.5880            1.5830             1.5770          1.5720
USDCHF      Sideways-Down         0.9640            0.9580             0.9520          0.9480
EURJPY       Sideways-Up             101.00              99.50              98.50            97.80
AUDUSD      Sideways                  1.0415            1.0390            1.3330          1.0285

GFM Research Private Limited