The USD Dollar appreciates across the board, especially against the Cable wherein the Greenback appreciated by more than 150 pips; against the Euro, Aussie Dollar and the Swiss Franc, the USD appreciated marginally. Profit taking witnessed in the key equity index of the Dow Jones Industrials seems to be the factor driving the USD.
The US Dollar Index (DXU11) is expected to find support at 75.00 ranges, only weekly close below 74.70 ranges would reinitiate long-term weakness in USD else DXU11 is expected to test 77.00. Only multiple closes above 77.20 would post short-term bottom in the US Dollar.
Key equity index, Dow Jones Industrials (DJIA) has broken important trend line support at 12200 ranges on Friday, June 03,2011 to currently trade above 12000 ranges at 12100 ranges; 11740-11800 ranges is expected to act as final support for DJIA. Historic correlation between DJIA Vs DX suggests sideways stronger USD for few trading session till the Dow takes support at 11700-11800 ranges.
NYMEX August Crude also recovered from important support of $91.50 ranges, daily close above $96.40 would post short-term bottom in NYMEX August Crude.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4190 1.4260 1.4340 1.4384
USDJPY 79.45 79.80 80.50 81.30
GBPUSD 1.5835 1.5930 1.6140 1.6200
USDCHF 0.8300 0.8350 0.8470 0.8555
EURJPY 113.90 114.65 115.90 117.45
AUDUSD 1.0430 1.0490 1.0600 1.0645
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