Daily FX perspective November 1, 2012 – GFM Research

Dollar Index traded weak after hitting the short term resistance of 80.40. The Dollar Index is currently trading flat at 80.02 ranges, near to the upper range of the range bound pattern observed since couple of weeks; DX is still range bound between 80.40 and 79.00.

The benchmark equity index (.DJIA) is currently trading at 13075 ranges after finding support at 12980-13000 ranges. Due to 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                         80.50               80.20            79.50            79.10
GBPUSD     Sideways-Up                   1.6230              1.6180          1.6100         1.6060
USDCHF     Sideways                        0.9480              0.9400          0.9270         0.9210
EURJPY      Sideways                        105.40             104.50           103.10         102.50
AUDUSD     Sideways-Up                   1.0540             1.0430           1.0310         1.0260


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