Daily FX perspective October 22, 2012 – GFM Research

Gain in US Dollar leads to sell off in most of the asset classes especially the equities; the benchmark equity index of Dow Industrials (.DJIA) has fallen more than 200 points to currently trade at 13340 ranges. The short term trend is still range bound between 80.40 and 79.00; daily close below 78.80 would result in further weakening of the dollar index to 78.15 ranges.

The benchmark equity index (.DJIA) is currently trading at 13340 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                         1.3170             1.3110          1.3000          1.2965      
USDJPY     Sideways-Up                       80.40              79.90            79.30            79.00      
GBPUSD    Sideways-Down                 1.6095             1.6070          1.6000          1.5960      
USDCHF     Sideways                         0.9340             0.9280          0.9200           0.9140      
EURJPY     Sideways-Up                     105.40             104.50          103.10           102.50      
AUDUSD    Sideways-Up                     1.0470             1.0430          1.0300           1.0280     

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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