The US Dollar tumbles after the trade deficit widens by more than $6B. The USD appreciated homogeneously against all the FX majors.
Key equity index, Dow Jones Industrials (DJIA) is expected to find resistance 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; only weekly close above 76.70 in case of DXU11 would result in long term trend reversal in the US Dollar
NYMEX August Crude closed again above the key resistance of $95.70 to currently trade at $97.68, consistently trading above $94.00 would long-term bottom in CLQ11.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4050 1.4150 1.4330 1.4380
USDJPY 78.00 78.50 79.60 80.20
GBPUSD 1.6000 1.6050 1.6240 1.6300
USDCHF – 0.8000 0.8160 0.8250
EURJPY 111.00 111.60 113.40 114.10
AUDUSD 1.0660 1.0690 1.0780 1.0840
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