06 Sept 2012: Daily FX perspective by GFM Research

The Dollar Index is currently trading flat at the critical support of 81.00; most of the FX pairs are trading flat since the Asian session with focus shifting to the ECB interest rate decision and its policies. 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 13085 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.

NYMEX Crude after finding support at $94.20 is currently trading firm at $96.00. The short-term trend is range bound between $94.00 and $98.00; daily close above $98.40 would open door towards $102.00.

FX Pair       Trend        Resistance 2      Resistance 1       Support 1      Support 2

EURUSD      Sideways             1.2650               1.2630             1.2530            1.2480
USDJPY      Sideways               78.80                 78.65               78.10              77.90
GBPUSD     Sideways              1.6030               1.5960              1.5860           1.5800
USDCHF      Sideways             0.9650               0.9630              0.9500            0.9450
EURJPY      Sideways              101.00                99.60                98.30              97.90
AUDUSD     Sideways              1.0310              1.0240              1.0170             1.0130

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