The USD Dollar appreciates for the consecutive fourth day DXU11 found support at 75.00 ranges; short covering was witnessed in the US Dollar across the board especially against the Euro, the Cable and the Aussie Dollar on the event of most of the asset classes succumbed to profit taking.
The US Dollar Index (DXU11) is expected to test 77.00 till 74.70 ranges remain intact, only weekly close below 74.70 would reinitiate long-term weakness in the USD, in contrary multiple closes above 77.20 would post short-term bottom in the US Dollar.
Key equity index, Dow Jones Industrials (DJIA) fell sharply on Friday (24.06-2011) to currently trade weaker at , only weekly close above 12200 ranges would post short-term bottom in the Dow; nevertheless 11600-11650 ranges is expected to act as final support for DJIA. Historic correlation between DJIA Vs DX suggests sideways to stronger USD for few trading session till the Dow takes support at 11600-11700 ranges.
NYMEX August Crude could not hold to the recovery made from the session lows of Thursday (23.06.2011) though it closed above important support of $91.50 ranges and is currently trading at $90.55; historic support of $88.00 is expected to act as final support.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3900 1.4080 1.4240 1.4300
USDJPY 80.00 80.50 81.15 81.60
GBPUSD 1.5825 1.5910 1.6000 1.6050
USDCHF – 0.8300 0.8400 0.8555
EURJPY 113.50 114.00 114.70 115.20
AUDUSD 1.0330 1.0380 1.0480 1.0525
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