The Dollar Index is still trading range bound between 80.40 and 79.00. The USD traded flat against the Euro, the Swiss Franc and the Aussie Dollar but appreciated by more than 70 pips against the Cable.
The benchmark equity index (.DJIA) is currently trading at 13060 ranges with immediate support seen at 12980-13000 ranges. After the steep fall during 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 1.3060 1.2860 1.2810
USDJPY Sideways-Down 80.50 79.80 79.10 78.80
GBPUSD Sideways 1.6120 1.6060 1.6000 1.5950
USDCHF Sideways 0.9480 0.9410 0.9300 0.9230
EURJPY Sideways-Down 103.80 103.30 102.30 102.00
AUDUSD Sideways-Up 1.0430 1.0400 1.0330 1.0290
GFM Research Private Limited
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