The Dollar Index (DXM11) after taking support at 73.50 ranges, recovered beyond 74.50 ranges to currently trade at 74.80; DXM11 may trade sideways with 73.40 acting as very important support; only weekly close below 73.40 would result in further weakness reinitiating long-term bearishness in the USD.
Key equity index, Dow Jones Industrials (DJIA) has broken important trend line support at 12200 ranges on Friday, June 03,2011 to currently trade at 12070 ranges; 11600-11700 ranges is expected to act as final support for DJIA. Historic correlation between DJIA Vs DX suggests sideways trend in the Dollar Index with probable short covering in near the near term.
NYMEX Crude July basis is trading in sideways trend between $102.70 and $96.00. $95.00 is expected to act as decent support, only breach of $95.00 would result if further weakness.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4120 1.4170 1.4470 1.4500
USDJPY 79.70 80.20 81.00 81.70
GBPUSD 1.6070 1.6130 1.6300 1.6370
USDCHF 0.8325 0.8380 0.8470 0.8550
EURJPY 113.70 114.55 116.20 117.00
AUDUSD 1.0490 1.0530 1.0615 1.0650
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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.