The Dollar Index is currently trading flat at 80.15 ranges, near to the upper range of the range bound pattern formed during past couple of weeks; DX is still range bound between 80.40 and 79.00. Direct correlation was observed between the benchmark equity index of the Dow Industrials (.DJIA) and the Dollar Index (DX) as against conventional inverse correlation.
The benchmark equity index (.DJIA) is currently trading at 13210 ranges after finding support at 12980-13000 ranges. Due to the steep fall during 19-10-12 and 23-10-12, DJIA may trade sideways for sideways for couple of weeks before trend sets in.
Historic correlation between DX Vs DJIA suggests the long-term trend is still dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis. Even the medium term trend has turned bearish after the Dollar Index breached 81.00 ranges and with immediate support seen in 78.00-78.20 ranges.
FX Pair Trend Resistance 2 Resistance 1 Support 1 Support 2
EURUSD Sideways 1.3120 1.3030 1.2860 1.2810
USDJPY Sideways 80.65 80.50 80.00 79.70
GBPUSD Sideways 1.6230 1.6180 1.6090 1.6055
USDCHF Sideways 0.9480 0.9430 0.9270 0.9210
EURJPY Sideways 105.40 104.50 102.90 102.50
AUDUSD Sideways 1.0480 1.0430 1.0310 1.0260
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