After the Dollar Index corrected to 76.00 ranges, it gained to currently trade at 77.80 ranges, the major trend indicates it appreciating to 79.00 ranges before resuming downwards. Double dip depression in the US is still glooming resulting in battering of most of the asset classes especially the equities.
Key equity index of the Dow Jones Industrials (DJIA) is expected to find support at 10700; whereas 11500-11600 ranges is expected to act as important resistance; trading consistently below 10700 would result in further extension of fall towards 9700 ranges. Historic correlation between DJIA and DX suggests further strengthening on the Dollar to 78.75-79.30 ranges
NYMEX November Crude is facing resistance at $90.00-$90.50 since last week; trading below $84.50, it is expected to slip to $82.00 and next $80.00
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3460 1.3580 1.3720 1.3750
USDJPY 76.00 76.30 77.60 78.20
GBPUSD 1.5570 1.5660 1.5740 1.5860
USDCHF 0.8740 0.8780 0.8960 0.9150
EURJPY – 103.80 105.30 106.00
AUDUSD 1.0020 1.0145 1.0300 1.0390
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