Daily FX perspective October 11, 2012 – GFM Research

The US Dollar could trade flat despite profit taking witnessed in most of the asset classes, especially in the benchmark equity index of Dow Jones Industrials Average (.DJIA). The Dollar Index is currently trading flat at 80.10 ranges, currently the short term trend is range bound between 80.40 and 79.00.
The benchmark equity index (.DJIA) is currently trading weak at 13330 ranges with immediate support seen at 13260-13280 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.


FX Pair      Trend               Resistance 2    Resistance 1    Support 1    Support 2

EURUSD     Sideways-Down           1.2980             1.2920           1.2800         1.2740
USDJPY      Sideways                     78.50               78.20             77.60           77.30
GBPUSD     Down                         1.6080             1.6050           1.5920         1.5890
USDCHF     Sideways-Up                0.9460             0.9440           0.9370         0.9340
EURJPY     Sideways-Down            101.40             101.10             99.80           99.30
AUDUSD    Sideways-Up                1.0350             1.0320           1.0210          1.0160

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

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