The U.S Dollar strengthened against the Euro and the Aussie Dollar but traded flat against the Cable, Japanese Yen and the Swiss Franc. Fed’s policies due for release late night would provide key direction for the FX Majors. The Dollar Index (DX) is expected to remain range bound between 76.60 and 75.50 with weaker bias. Daily close above 76.80 ranges would post short-term bottom.
The Dow is trading at historic resistance zone of 12300 to 12400 ranges. Historic correlation between the Dow Jones (DJIA) and DX may not be effective due to decoupling of correlation between the FX majors constituting the Dollar Index.
NYMEX Crude, May basis is trading firm above $108.00, though it is trading at critical resistance of $108.00-$109.00 ranges.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4130 1.4165 1.4285 1.4325
USDJPY 83.40 83.88 84.80 85.90
GBPUSD 1.6080 1.6110 1.6200 1.6335
USDCHF 0.9100 0.9150 0.9300 0.9400
EURJPY 118.30 118.90 120.60 121.00
AUDUSD 1.0190 1.0255 1.0380 1.0415
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