The Dollar Index tried to trade strong during the Asian session and the European session but continued last week’s fall after the Dow Industrials recovered from the lows during mid New York trade. It is trading near to the support of 78.20; though the medium-term trend is bearish, DXH2 may trade sideways between 79.80 and 78.20. The long-term trend is still bearish till the Dollar Index does not close above 83.50 on monthly basis. Historic congestion is seen in the ranges of 81.40-83.50.
The benchmark equity Index of the Dow Jones Industrials has sold off after reaching last year highs of 12850-12900. Historic correlation between DX Vs DJIA is signifying USD bearishness in long-term, only if 83.50 is given away on monthly closing basis; long-term bottom would be posted in the USD.
NYMEX Feb Crude is trading range bound between $101 and $98.00. Correlation between CLH2 and DJIA is again positive after witnessing inverse correlation during past 4-5 trading sessions; the major trend is intact till it manages to close consistently above $89.00 ranges on weekly basis, though short-term trend is signaling mild weakness.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.3070 1.3125 1.3220 1.3265
USDJPY 75.70 76.20 76.50 76.90
GBPUSD 1.5630 1.5680 1.5770 1.5860
USDCHF 0.9030 0.9080 0.9190 0.9220
EURJPY 99.30 99.90 101.10 101.70
AUDUSD 1.0420 1.0490 1.0670 1.0720
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