Daily FX perspective October 08, 2012 – GFM Research

With most of the asset classes, especially the equities correcting, the Dollar Index appreciated of the European lows during the American session. The Greenback gained most against the Cable followed by the Aussie. The benchmark equity index (.DJIA) is currently trading weak at 13574 ranges with immediate resistance seen at 13680 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 again by more than 1USD 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-Down          1.3080              1.3040        1.2950           1.2920
USDJPY       Sideways-Down           79.00                78.80          78.40             78.10
GBPUSD      Down                       1.6170              1.6130         1.6060           1.6020
USDCHF      Sideways-Up              0.9370              0.9340         0.9270           0.9240
EURJPY       Sideways-Down         104.00              103.10         101.60           101.20
AUDUSD      Down                      1.0250              1.0210         1.0130           1.0090

GFM Research Private Limited

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

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