Daily FX perspective October 05, 2012 – GFM Research

The Dollar Index (DX) started depreciating again after couple of days of consolidation on the event of most of the asset classes, especially the benchmark equity index of the Dow Industrials (DJIA) trading strong. The benchmark equity index (.DJIA) is currently trading strong at 13573 ranges with immediate resistance seen at 13600 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 slipped bounced back more than two USD after hitting intermediate support of $87.80 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                    1.3080             1.3030          1.2950          1.2920
USDJPY     Sideways-Down              79.00              78.80            78.20            78.00
GBPUSD     Sideways-Up                1.6270            1.6230           1.6160          1.6100
USDCHF     Sideways                     0.9370            0.9340           0.9270          0.9240
EURJPY     Sideways-Up                 103.20            102.80           101.40          101.00
AUDUSD    Sideways                     1.0320             1.0280           1.0210          1.0160

GFM Research Private Limited

Economic Data Source: www.briefing.com
GMT- Greenwich Mean Time, ET-Eastern Time (U.S), IST-Indian Standard Time

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.