Daily FX perspective September 28, 2012 – GFM Research

The US Dollar resumes down trend as after testing intermediate resistance of 80.00 ranges resulting in most of the asset classes, especially the equities appreciating. The Greenback has lost most against the Cable continued by the Aussie. The benchmark equity index of the Dow Industrials (.DJIA) is currently trading firm at 13487 ranges; only daily close below 13110 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 has found support at $89.00 ranges and is currently trading firm at $92.30 ranges. Short term trend is sideways with $87.15 ranges acting as key support and $94.10 range acting as resistance.

FX Pair         Trend            Resistance 2    Resistance 1    Support 1    Support 2

EURUSD        Sideways-Up            1.3000             1.2970           1.2910          1.2880
USDJPY         Sideways                  78.10               77.80             77.30            77.00
GBPUSD        Sideways-Up            1.6360             1.6280           1.6220          1.6190
USDCHF        Sideways-Down        0.9420             0.9380           0.9330          0.9270
EURJPY         Sideways                 101.00             100.45            99.50            99.20
AUDUSD       Sideways-Up             1.0590             1.0540          1.0410           1.0380

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.