Daily FX perspective November 5, 2012 – GFM Research

Better than expected US jobs data resulted in appreciation of the greenback against most of the FX majors. The Dollar has appreciated across the basket, wherein the Cable fell by more than 90 pips, the Euro by more than 100 pips and the Aussie by more than 50 pips.

The benchmark equity index (.DJIA) is currently trading at 13080 ranges after finding support at 12980-13000 ranges but 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.

FX Pair     Trend                     Resistance 2    Resistance 1    Support 1    Support 2

EURUSD    Sideways-Down                 1.2920              1.2880          1.2810          1.2720
USDJPY    Sideways                            80.65                80.50            80.00           79.70
GBPUSD    Sideways-Down                 1.6090              1.6060          1.6000          1.5960
USDCHF    Sideways-Up                      0.9480              0.9450          0.9360          0.9300
EURJPY    Sideways                           105.40              104.50          102.90          102.50
AUDUSD    Sideways                          1.0480              1.0430          1.0320          1.0260

GFM Research Private Limited

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