Daily FX Perspective December 21, 2012 – GFM Research


Market Commentary

The US Dollar Index is showing resilience at the key support of 79.00 ranges on the event of correction witnessed in most of the asset classes, especially in the benchmark equity index of Dow Industrials (.DJIA). The Dollar Index is currently trading flat at 79.41; only daily close below 79.00 would reinitiate major Dollar weakness.

The benchmark equity index (.DJIA) flat with 13300-13400 ranges acting as the short term resistance. Only daily close below 12400 would put major trend in jeopardy else as the index consistently trades beyond 13300, major rally reinitiates.

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

1.3260

1.3220

1.3120

1.3065

USDJPY

Sideways-Down

84.70

84.45

83.70

82.90

GBPUSD

Sideways-Down

1.6300

1.6270

1.6230

1.6190

USDCHF

Sideways-Up

0.9200

0.9170

0.9120

0.9080

EURJPY

Sideways-Down

112.50

111.80

110.80

110.45

AUDUSD

Sideways-Down

1.0520

1.0480

1.0430

1.0410

 

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Disclaimer: This report contains the views of GFM Research Private Limited. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research Private Limited nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.