The Dollar Index is finding support the short-term support of 78.20 on the event of the key equity index of the Dow Industrials reaching supply zone of previous year highs of 12900 ranges. DXH2 may trade sideways between 80.10 and 78.20; though the medium-term trend is bearish. 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 found support at 12550 ranges to retest last year high. DJIA may trade sideways till it does not close consistently above 13000. 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 $95.00. Correlation between CLH2 and DJIA has again turned negative. 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 1.2975 1.3060 1.3120 1.3220
USDJPY 76.00 76.40 76.90 77.30
GBPUSD 1.5690 1.5740 1.5800 1.5870
USDCHF 0.9150 0.9200 0.9290 0.9340
EURJPY 99.50 100.20 101.60 102.40
AUDUSD 1.0620 1.0680 1.0760 1.0800
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