The USD depreciated homogeneously against most of the majors, though it has traded flat against the Japanese Yen and the Aussie Dollar. It seems that the all the eyes are Euro Zone debt crisis and the US default risk.
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, whereas weekly close below 12300 would push DJIA into range bound trading pattern. 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 September Crude (CLU11) is expected to remain range bound between $95.00 and $99.80, either side breakout would establish trend.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4150 1.4180 1.4290 1.4360
USDJPY 78.00 78.50 79.30 79.60
GBPUSD 1.6050 1.6130 1.6220 1.6270
USDCHF 0.8000 0.8100 0.8275 0.8330
EURJPY 111.50 112.00 113.40 114.40
AUDUSD 1.0620 1.0700 1.0840 1.0900
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