The Dollar Index is still trading range bound between 80.30 and 79.00. The Greenback traded flat yesterday after steep rise witnessed during past couple of days on the event of sell off in most of the asset classes especially in the benchmark equity index of the Dow Industrials (.DJIA). The US Dollar has lost most against the Cable and the Aussie though it managed to trade flat against the Common currency and the Swiss Franc.
The benchmark equity index (.DJIA) is currently trading at 13120 ranges with immediate support seen at 12980-13000 ranges. After the steep fall of 19-10-12 and 23-10-12, DJIA may trade sideways for sideways for couple of weeks before trend sets in.
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 1.3120 1.3070 1.2860 1.2810
USDJPY Sideways-Up 80.70 80.40 79.70 79.30
GBPUSD Sideways-Up 1.6130 1.6070 1.6020 1.5970
USDCHF Sideways 0.9430 0.9360 0.9250 0.9200
EURJPY Sideways-Up 105.40 104.50 103.10 102.50
AUDUSD Sideways-Up 1.0430 1.0400 1.0325 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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