The Dollar Index (DXM11) after finding resistance at 76.50 ranges slipped below critical support of 75.00 ranges. Long-term bearishness in the Dollar seems to be back; consistent close below 74.50 would increase our conviction.
Key equity index of the Dow Jones Industrials (DJIA) has taken support at 12200 ranges; the trend is sideways capped between 12200 and 12600; consistent close above 12600 would resume bull trend in the Dow. Historic correlation between DJIA Vs DX suggests sideways trend in the USD with weaker bias.
NYMEX Crude July basis is trading tight between $101.50 and $99.00 with $95 expected to act as important support.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4120 1.4210 1.4320 1.4350
USDJPY 80.20 80.70 81.60 82.10
GBPUSD 1.6360 1.6410 1.6560 1.6660
USDCHF – 0.8400 0.8550 0.8630
EURJPY 113.80 114.70 116.50 117.00
AUDUSD 1.0580 1.0620 1.0730 1.0830
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