The US Dollar continues its loosing streak on the event of stronger asset classes especially the benchmark equity index of the Dow Jones Industrials (.DJIA); now that the Dollar Index is trading near short-term support of 78.20, DXH2 may trade sideways between 79.80 and 78.20; though the medium-term trend is bearish. The long-term trend is still bearish till the Dollar Index does not close above 83.50 on monthly basis. Historic congestion is seen in the ranges of 81.40-83.50.
The benchmark equity Index of the Dow Jones Industrials found support at 12550 ranges to retest last year high. DJIA may trade sideways till it does not close consistently above 13000. 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 trading range bound between $101 and $95.00. Correlation between CLH2 and DJIA has again turned negative; the major trend is intact till it manages to close consistently 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 1.3030 1.3145 1.3220 1.3280
USDJPY 75.70 76.10 76.50 76.80
GBPUSD 1.5740 1.5765 1.5920 1.5960
USDCHF 0.9000 0.9035 0.9260 0.9340
EURJPY 99.00 99.50 101.80 102.80
AUDUSD 1.0630 1.0660 1.0770 1.0800
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