Non eventful day contributed to dull trading in most of the FX Pairs. The Dollar Index is trading flat at 79.55 after finding support at 78.70 ranges; further fall in the Greenback is expected only on the Dollar Index consistently trading below 78.00 ranges. Though the major trend is bearish, the USD seems to be over sold in short-term. The benchmark equity index of the Dow Industrials (.DJIA) is currently trading firm at 13588 ranges; only daily close below 13170 would halt rally; though 2007 highs of 14000 ranges would act as major barrier.
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 and the index seems to be consolidating in 78.70-78.20 ranges.
NYMEX Crude trading flat at $92.30 after finding support at intermittent support of $91.00 ranges. Short term trend is weak and may test $87.15 ranges with $94.10 range still acting as resistance.
FX Pair Trend Resistance 2 Resistance 1 Support 1 Support 2
EURUSD Sideways-Down 1.3000 1.2980 1.2880 1.2830
USDJPY Sideways-Down 78.40 78.00 77.50 77.00
GBPUSD Sideways 1.6300 1.6270 1.6220 1.6160
USDCHF Sideways-Up 0.9430 0.9410 0.9300 0.9270
EURJPY Sideways-Down 101.80 101.30 100.50 100.20
AUDUSD Sideways 1.0530 1.0450 1.0390 1.0370
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