The US Dollar continues down trend after hitting short term resistance of 80.25 ranges a couple of days back to currently trade at short term support of 79.20 resulting in appreciation of most of the asset classes, especially the equities. The short term trend is range bound between 80.40 and 79.00; daily close below 79.00 would result in further weakening of the dollar index to 78.15 ranges
The benchmark equity index (.DJIA) is currently trading firm at 135000 ranges with immediate support seen at 13260-13280 ranges. Only daily close below 13170 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 78.00-78.20 ranges.
FX Pair Trend Resistance 2 Resistance 1 Support 1 Support 2
EURUSD Sideways-Up 1.3230 1.3170 1.3040 1.2980
USDJPY Sideways 79.20 79.00 78.20 77.60
GBPUSD Sideways 1.6180 1.6140 1.6090 1.6060
USDCHF Sideways-Down 0.9330 0.9280 0.9200 0.9090
EURJPY Sideways-Up 104.60 103.20 102.50 102.10
AUDUSD Sideways 1.0370 1.0330 1.0270 1.0250
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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