Daily FX perspective October 01, 2012 – GFM Research

On Friday, 28-09-12, the US Dollar traded weak for most of the European session; but appreciated during the American session on the event of profit taking witnessed on most of the asset classes, especially the bench mark equity index of the Dow Industrials (.DJIA). The benchmark equity index (.DJIA) is currently trading firm at 13460 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 flat at $91.80 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                    1.2960             1.2890          1.2790          1.2700
USDJPY        Sideways-Up                  78.30              78.20            77.55            77.30
GBPUSD        Sideways-Down            1.6180            1.6160          1.6100              –
USDCHF       Sideways                      0.9460            0.9450          0.9360          0.9340
EURJPY        Sideways                     100.45             100.30            99.50           99.20
AUDUSD      Sideways                      1.0430             1.0390          1.0320              –

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