Last minute deal has been struck to increase the US borrowings by President Obama, but the street seems to be more concerned about the weakening of the US economy which resulted in sell off for the straight eighth day in the equities across the world. The Dow has lost more than 250 point during yesterday’s trading session.
Historic correlation between the Dollar Index (DX) and the Dow Jones Industrials (DJIA) suggests long term bearishness in the USD though short covering may be witnessed in near term.
The Dollar Index is currently capped between 73.40 and 76.70 only weekly close on the either side would establish trend in the respective direction.
Taking queues from the weaker economic statistics, NYMEX Crude traded weak and is currently trading at $93.15; $89.00 is expected to act as the final major support.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4128 1.4180 1.4260 1.4330
USDJPY 76.50 76.80 77.80 78.20
GBPUSD 1.6180 1.6230 1.6330 1.6410
USDCHF – 0.7600 0.7810 0.7900
EURJPY 108.30 109.00 110.50 111.00
AUDUSD 1.0550 1.0690 1.0810 1.0880
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