The USD Dollar appreciates for the second consecutive day though most of the other major FX majors especially the Euro and the Aussie Dollar recovered by the end of New York trade due to bargain buying witnessed in the key equity index of the Dow Jones Industrials.
The US Dollar Index (DXU11) is expected to find support at 75.00 ranges, only weekly close below 74.70 ranges would reinitiate long-term weakness in USD else DXU11 is expected to test 77.00, in contrary only multiple closes above 77.20 would post short-term bottom in the US Dollar.
Key equity index, Dow Jones Industrials (DJIA) recovered from important support of 11900 to currently trade at 12093 ranges, weekly close above 12150 ranges would post short-term bottom in the Dow; nevertheless 11740-11800 ranges is expected to act as final support for DJIA. Historic correlation between DJIA Vs DX suggests sideways stronger USD for few trading session till the Dow takes support at 11700-11800 ranges.
NYMEX August Crude also recovered yesterday from the session lows to close above important support of $91.50 ranges at $92.30, daily close above $96.40 would post short-term bottom in NYMEX August Crude.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD – 1.4110 1.4330 1.4415
USDJPY 79.45 79.80 80.50 81.30
GBPUSD 1.5935 1.5990 1.6050 1.6105
USDCHF – 0.8300 0.8470 0.8555
EURJPY 113.90 114.35 115.90 117.45
AUDUSD 1.0430 1.0490 1.0600 1.0645
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