The Dollar Index is expected to trade sideways with 78.20 acting as key support and 79.90 acting as key resistance. Dow Industrials entering supply zone of previous year highs of 12900 ranges, which may result in the Greenback appreciating. Though the medium-term trend is bearish, DXH2 may trade sideways between 80.10 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 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 Trend Support 2 Support 1 Resistance 1 Resistance 2
EURUSD Sideways-Down 1.2990 1.3060 1.3140 1.3220
USDJPY – 76.00 76.40 76.90 77.30
GBPUSD Sideways 1.5690 1.5740 1.5840 1.5870
USDCHF Sideways 0.9150 0.9190 0.9290 0.9340
EURJPY Sideways 99.50 100.20 101.50 102.40
AUDUSD Up 1.0630 1.0700 1.0840 1.0910
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