Daily FX perspective October 30, 2012 – GFM Research

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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