Daily FX Perspective December 17, 2012 – GFM Research

Market Commentary

Despite most of the asset classes, especially the benchmark equity index of the Dow Industrials (DJIA) trading flat, the Dollar Index (DX) continued depreciating across the board to close weak at 79.65 ranges. The Dollar Index is currently trading weak at 79.64 after correcting from intermediate resistance of 81.00 ranges though 79.40 may again act as decent support. Only daily close below 79.00 would reinitiate Dollar weakness.

The benchmark equity index (.DJIA) is currently trading weak 13190, with 13300 ranges acting as the short term resistance. Only daily close below 12400 would put major trend in jeopardy else as the index consistently trades beyond 13300, major rally reinitiates.

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.

FX Pair

Trend

Resistance 2

Resistance 1

Support 1

Support 2

EURUSD

Sideways-Up

1.3240

1.3200

1.3130

1.3060

USDJPY

Sideways-Up

85.50

85.10

83.90

83.40

GBPUSD

Sideways-Up

1.6230

1.6200

1.6140

1.6100

USDCHF

Down

0.9240

0.9210

0.9080

0.9030

EURJPY

Sideways-Up

111.40

111.00

109.90

109.00

AUDUSD

Sideways

1.0640

1.0590

1.0530

1.0500

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Disclaimer: This report contains the views of GFM Research Private Limited. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research Private Limited nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.