03 Sep 2012: Daily FX perspective – GFM Research

On Friday, the US Dollar depreciated off the European session highs to close just above the critical support of 81.00 ranges to currently trade at 81.23 the short-term trend is still range bound between 81.00 and 82.10; only daily close below 81.00 would lead to further depreciation in the USD across the board. The benchmark equity index of the Dow Industrials (.DJIA) is currently trading at 13060 ranges with 13200-13300 still acting as critical resistance zone; on the lower side 12850-12900 ranges may act as important support.

Historic correlation between DX Vs DJIA suggests the short-term and medium-term trend being sideways where as the long-term trend is still dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis.

On the event of the US Dollar depreciating, NYMEX Crude has gained more the $2.50 to close strong at $96.56 to currently trade at $96.26. Daily close above $98.40 would open door towards $102.00.

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FX Pair       Trend              Resistance 2    Resistance 1    Support 1    Support 2

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EURUSD      Sideways                    1.2650             1.2620          1.2530          1.2480
USDJPY       Sideways                     78.80               78.50            78.10            77.90
GBPUSD      Sideways                          –                1.5920          1.5820          1.5800
USDCHF      Sideways                     0.9650             0.9570          0.9480          0.9450
EURJPY       Sideways                      99.20               98.60            97.80            97.00
AUDUSD     Sideways                     1.0340             1.0310           1.0220         1.0180

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