Daily FX perspective October 10, 2012 – GFM Research

The US Dollar traded depreciated across the board on the event of profit taking witnessed in most of the asset classes, especially in the benchmark equity index of the Dow Jones Industrials (DJIA). The benchmark equity index (.DJIA) is currently trading flat at 13464 ranges with immediate resistance seen at 13680 ranges; daily close below 13360 would result in further correction. 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 after finding support at $88.50 ranges continued appreciating to make a high of $92.90 during yesterday’s trade, but is currently trading with mild weakness at $92.05. 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           1.2980              1.2920          1.2800          1.2740
USDJPY      Sideways                     78.80                78.50            78.00            77.60
GBPUSD     Down                         1.6090              1.6050          1.5920          1.5890
USDCHF      Up                             0.9460              0.9440          0.9370          0.9340
EURJPY     Sideways-Down             101.90              101.10          100.00           99.30
AUDUSD    Sideways                     1.0290               1.0260          1.0200         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

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