The USD traded weak against most of the FX majors on the event of lack luster trading yesterday. The Dollar Index is trading at 80.00, near the upper boundary of the range bound trading pattern observed since past couple of months; DX is still range bound between 80.40 and 79.00.
The benchmark equity index (.DJIA) is currently trading at 13110 ranges after finding support 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 1.3030 1.2860 1.2810
USDJPY Sideways-Down 80.50 79.80 79.10 78.80
GBPUSD Sideways 1.6180 1.6130 1.6060 1.6000
USDCHF Sideways 0.9480 0.9380 0.9290 0.9220
EURJPY Sideways-Down 104.50 103.75 102.50 102.00
AUDUSD Sideways-Up 1.0430 1.0410 1.0350 1.0290
GFM Research Private Limited
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