Quite trading session was witnessed in the FX market where in the USD remained flat by the end of New York close. It seems that the all the eyes are Euro Zone debt crisis and the US default risk wherein President Obama and the Congress failed to reach and agreement to raise $14.3T USD borrowing limit as the August 2 deadline is just three weeks away.
Key equity index, Dow Jones Industrials (DJIA) is expected to find resistance in the zone of 12700-12800 which is historical congestion zone; consistently trading above 12400 reinitiate long-term rally in DJIA, whereas weekly close below 12300 would push DJIA into range bound trading pattern. Historic correlation between DJIA Vs DX suggests the major trend is still bearish in the Dollar Index though short covering can be expected; only weekly close above 76.70 in case of DXU11 would result in long term trend reversal in the US Dollar.
NYMEX September Crude (CLU11) is expected to remain range bound between $95.00 and $99.80.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3974 1.4050 1.4165 1.4280
USDJPY 78.00 78.50 79.30 80.20
GBPUSD 1.6000 1.6050 1.6140 1.6270
USDCHF 0.8000 0.8100 0.8275 0.8330
EURJPY 110.50 110.70 112.00 113.50
AUDUSD 1.0440 1.0500 1.0694 1.0800
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