Daily FX perspective September 10, 2012 – GFM Research

The Dollar Index has closed below the critical support of 81.00 to currently trade at 80.30 on the event of the ECB decision to go unlimited bond buying to tackle the Euro zone debt crisis. Weaker the expected jobs data also added to the weakening of the Greenback across the board.

The benchmark equity index of the Dow Industrials (.DJIA) has appreciated more than 250 points to close firm at 13292. Historic correlation between DJIA Vs DX indicates Dollar bearishness; only monthly close above 84.50 for the Dollar Index would post major bottom in the USD. Now that the dollar index has breached 81.00 ranges decisively the medium term trend has also turned negative for the USD.

NYMEX Crude is currently trading sideways with $94.00 still acting as important support and $98.20 acting as key resistance. Daily close above $98.40 would open room towards $102.00

FX Pair        Support 2       Support 1        Resistance 1        Resistance 2

EURUSD             1.2630             1.2680                 1.2950                  1.3000
USDJPY               77.80                78.00                  78.45                    78.60
GBPUSD             1.5910              1.5945                1.6030                  1.6110
USDCHF             0.9320              0.9370                0.9510                   0.9540
EURJPY               99.10                99.45                101.00                   101.30
AUDUSD            1.0270              1.0330                1.0415                   1.0440

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