The Dollar Index continued to appreciate throughout the European session but profit booking was witnessed during the American session on the event of the benchmark equity index of the Dow Jones recovering off the gap down opening to close firm above 11500 ranges. Though 76.00 ranges are expected to again act important support in medium term; historic resistance in the Dollar Index is seen in the ranges of 79.50 to 80.20 to 81.30.
Key equity index of Dow Jones Industrials (DJIA) is expected to trade range bound between 11600 to 11200 ranges. Historic correlation between DJIA Vs DX suggests short-term top being posted in the USD and short-term bottom being posted in the Dow.
In NYMEX November Crude found support at $85.50 ranges and closed beyond $88.20; it is expected to become range bound between $87.00 and $90.00, consistent close above $90.00 would establish fresh rally.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3600 1.3700 1.3875 1.3980
USDJPY – 76.00 77.40 78.00
GBPUSD 1.5620 1.5660 1.5760 1.5830
USDCHF 0.8780 0.8860 0.9020 0.9065
EURJPY 103.90 105.00 106.45 108.00
AUDUSD 1.0145 1.0210 1.0340 1.0400
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