Weaker than expected employment numbers resulted in deep correction in the equity bourses, especially the Dow Jones Industrials (DJIA) resulting in short covering in the Dollar Index (DXM11).
Key equity index of the Dow Jones Industrials (DJIA) in trending sideways capped between 12200 and 12600; consistent close above 12600 would resume bull trend in the Dow, in contrary consistent close below 12200 ranges would result in deeper correction to 11600 ranges. Historic correlation between DJIA Vs DX suggests sideways trend in the USD with weaker bias though 73.40 in DXM11 is expected to act as important support.
NYMEX Crude July basis after trading tight between $102.70 and $99.00 broke out $102.70 but unable to hold above $102.00 closed weaker to trade currently at $99.46. The major trend still remains range bound between $95.00 and $105.00
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4240 1.4300 1.4470 1.4507
USDJPY 80.20 80.70 82.00 82.70
GBPUSD 1.6250 1.6300 1.6420 1.6500
USDCHF – 0.8400 0.8550 0.8630
EURJPY 114.70 115.60 117.00 118.00
AUDUSD 1.0440 1.0510 1.0670 1.0820
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