Daily FX perspective September 26, 2012 – GFM Research

Amidst most of the asset classes especially the equities correcting the Dollar Index appreciated to currently trade at 79.84. 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 with immediate support seen in 78.70-78.20 ranges.

NYMEX Crude trading weak at $91.10, unable to sustain above $93.20 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          1.2840          1.2745
USDJPY     Sideways-Down               78.40               78.00            77.50            77.00
GBPUSD     Sideways-Down             1.6230             1.6210          1.6130          1.6070
USDCHF     Sideways-Up                  0.9430             0.9410          0.9330          0.9300
EURJPY     Sideways-Down              101.00             100.30            99.60            99.20
AUDUSD    Sideways-Down              1.0430             1.0370          1.0330          1.0300

GFM Research Private Limited


Disclaimer: This report contains the views of GFM Research Private Limited. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research Private Limited nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.