Strong equity bourses across the world, especially the benchmark index of the Dow Jones Industrials resulted in the Dollar Index loosing more then 1.2 points during last week. The medium trend is bullish till 79.60 ranges are holding on weekly closing basis, though 83.30 ranges would act as formidable resistance. Historic congestion is seen in the ranges of 81.40-83.50.
The benchmark equity Index of the Dow Jones Industrials has appreciated more than 200 points after taking based at 12300 ranges couple of weeks back to currently trade at 12690 ranges; last year highs of 12850-12900 ranges may act as supply zone again. Historic correlation between DX Vs DJIA is signifying USD bearishness in long-term, only if 83.50 is given away on monthly closing basis; long-term bottom would be posted in the USD.
NYMEX Feb Crude is again succumbed to sell off from $102 ranges to currently trade at $98.00. Rare inverse correlation between CLH2 and DJIA is observed during last week; the major trend is intact till it manages to close above $89.00 ranges on weekly basis, though short-term trend is signaling mild weakness.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.2760 1.2830 1.2970 1.3050
USDJPY 76.40 76.80 77.20 77.40
GBPUSD 1.5440 1.5510 1.5640 1.5730
USDCHF 0.9220 0.9300 0.9420 0.9450
EURJPY 98.20 98.60 100.30 101.00
AUDUSD 1.0350 1.0410 1.0510 1.0570
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