Daily FX perspective November 8, 2012 – GFM Research

Weakness in most of the asset classes, especially in equities led to strengthening of the US Dollar after showing weakness for most of the European session. The Greenback continued to gain against the Common currency, the Swiss Franc and Aussie Dollar whereas traded weak against the Japanese Yen. The Dollar Index may again expected to find resistance at 81.00 ranges from where is sold off during September last.

The benchmark equity index (.DJIA) slips below the critical support of 12980 to currently trade at 12955; stronger USD may result in further weakness to the key equity Index.

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                          1.2860              1.2810          1.2710          1.2680
USDJPY    Sideways                            80.65                80.20            79.50           79.10
GBPUSD    Sideways                          1.6130              1.6050          1.5940          1.5900
USDCHF    Sideways                          0.9530              0.9470          0.9330          0.9220
EURJPY    Sideways                           103.20              102.90          101.50         101.10
AUDUSD    Sideways                          1.0540              1.0450          1.0350         1.0320

GFM Research Private Limited

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