30-Aug: Daily FX perspective – GFM Research

The US Dollar is trading flat at 81.54 with 81.00-81.20 acting as support and 82.10-82.30 acting as resistance; only daily close below 81.00 would lead to further depreciation in the USD across the board. The benchmark equity index of the Dow Industrials (.DJIA) is currently trading at 13045 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 $95.00 ranges. Historic resistance is seen in the ranges of $98.20 ranges, further rally to $102 ranges can be expected only on daily close above $98.40.

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FX Pair             Trend          Resistance 2    Resistance 1    Support 1    Support 2

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EURUSD            Sideways               1.2675              1.2620          1.2480          1.2430
USDJPY            Sideways                 78.85                78.65            78.30            77.90
GBPUSD            Sideways               1.5920              1.5880           1.5770         1.5720
USDCHF            Sideways               0.9710               0.9640          0.9520         0.9480
EURJPY            Sideways                101.00                99.50            97.80           97.00
AUDUSD           Sideways                1.0415              1.0390          1.0285              –

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