Daily FX perspective September 11, 2012 – GFM Research

The Dollar Index at the historic support of 80.00, though 81.20-82.00 would act as major resistance. The benchmark equity index of the Dow Industrials (.DJIA) is currently trading firm at 13200 ranges after hitting intermediate resistance of 12300 ranges. Correlation between DJIA Vs DX suggests sideways trend in the Dollar Index with weaker bias.

Historic correlation between DX Vs DJIA suggests the long-term trend is still dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis. Even the medium term trend has turned bearish after the Dollar Index breached 81.00 ranges though 79.50-80.00 ranges would act a interim support.

NYMEX Crude trading flat at $96.25. 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-Up         1.2980              1.2820          1.2720          1.2660
USDJPY       Sideways-Down      79.00                78.40            78.00            77.80
GBPUSD      Sideways-Up         1.6060              1.6030          1.5960           1.5900
USDCHF      Sideways-Down     0.9580              0.9510          0.9420           0.9380
EURJPY       Sideways-Up         101.60              101.00            99.30            99.00
AUDUSD      Up                      1.0410              1.0360           1.0300          1.0270

GFM Research Private Limited

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