Cable succumbed to profit taking against the Greenback; after the Dollar Index (DX) hitting low of 72.90 ranges, the U.S Dollar stabilized against most of the FX majors; tight trading pattern was observed in EURUSD, USDJPY, USDCHF and AUDUSD; where as the Cable has lost more than 150 pips.
The Dow Jones Industrials (DJIA) is trading consistently above the major support of 12720 ranges, DJIA Vs DX correlation suggests weakening of the U.S Dollar though caution is spelt out in case of DJIA as it is entering major resistance zone of 12900-13100. The U.S Dollar seems to be over sold against most of the FX majors and short covering may be witnessed.
NYMEX Crude June basis after facing stiff resistance at $114.00 upper ranges sold off below the critical support of $110.80 and currently trading at $110.80.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4650 1.4730 1.4870 1.5000
USDJPY 80.00 80.60 81.40 82.40
GBPUSD 1.6350 1.6410 1.6590 1.6665
USDCHF 0.8530 0.8590 0.8670 0.8715
EURJPY 117.90 118.80 120.80 121.60
AUDUSD 1.0680 1.0760 1.0900 1.0950
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