The US Dollar Index appreciated for fourth consecutive day on the event of on the event of profit taking in the key equity index of the Dow Jones Industrials (DJIA). The USD has appreciated homogeneously against all the FX majors. Further strengthening of the Dollar Index is expected on weekly close above 76.70.
Key equity index, Dow Jones Industrials (DJIA) is expected to find in the zone of 12700-12800 which is historical congestion zone; consistently trading above 12400 reinitiate long-term rally in DJIA. Historic correlation between DJIA Vs DX suggests the major trend is still bearish in the Dollar Index though short covering can be expected.
NYMEX August Crude though crossed important resistance of $95.60, could not trade above $100 which lead to sell off below $95.00 to currently trade at $94.36, weekly close below $92.20 would trigger sell of towards $88.00 ranges.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3850 1.3900 1.4030 1.4114
USDJPY 79.00 79.50 80.50 81.00
GBPUSD 1.5770 1.5810 1.5950 1.6000
USDCHF 0.8250 0.8300 0.8440 0.8520
EURJPY 108.80 109.90 112.50 113.30
AUDUSD 1.0440 1.0540 1.0660 1.0690
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