Daily FX perspective October 31, 2012 – GFM Research

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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