The Cable finds support at 1.6450 ranges after three days of correction; against rest of the FX pairs, the Green back traded in narrow range. The U.S Dollar seems to be oversold in short-term; short covering may be seen though there are no signs of short covering; the Dollar Index (DX) is still in bearish trend only daily close above 74.50 would result in USD bottoming out.
The Dow Jones Industrials (DJIA) is trading consistently above the major support of 12620 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 $108.90
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4650 1.4730 1.4890 1.5000
USDJPY 79.70 80.00 81.40 82.40
GBPUSD 1.6350 1.6430 1.6560 1.6600
USDCHF – 0.8530 0.8630 0.8670
EURJPY 117.90 118.80 120.80 121.60
AUDUSD 1.0590 1.0680 1.0830 1.0900
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