Daily FX perspective October 25, 2012 – GFM Research

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
+91-40-40268383
[email protected]
www.gfmresearch.com

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

Disclaimer: This report contains the views of GFM Research Private Limited. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research Private Limited nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.