The Dollar Index (DXU11) depreciates after appreciating four consecutive sessions on the event of recovery witnessed in the key equity index of the Dow Jones Industrials (DJIA). Most of the depreciation was contributed by the Euro, other three majors, the Cable, the Japanese Yen and the Aussie Dollar traded flat.
The US Dollar Index (DXU11) is expected to test 77.00 till 74.70 ranges remain intact, only weekly close below 74.70 would reinitiate long-term weakness in the USD, in contrary only multiple closes above 77.20 would post short-term bottom in the US Dollar.
Key equity index, Dow Jones Industrials (DJIA) finds support again in the ranges of 11900; major support is seen in the ranges of 11650-11700. Historic correlation between DJIA Vs DX suggests sideways to stronger USD though the major trend is still bearish.
NYMEX August Crude could not hold to the recovery made from the session lows of Thursday (23.06.2011) though it closed above important support of $91.50 ranges and is currently trading at $90.55; historic support of $88.00-$89.00 is expected to act as final support.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4080 1.4150 1.4374 1.4440
USDJPY 80.00 80.50 81.15 81.60
GBPUSD 1.5910 1.5940 1.6000 1.6050
USDCHF – 0.8300 0.8400 0.8555
EURJPY 114.00 115.00 116.00 117.50
AUDUSD 1.0380 1.0450 1.0500 1.0525
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