31-Aug: Daily FX perspective – GFM Research

The US Dollar is still trading flat at 81.64 with 81.00-81.20 acting as support and 82.10-82.30 acting as resistance; only daily close below 81.00 would lead to further depreciation in the USD across the board. The benchmark equity index of the Dow Industrials (.DJIA) is currently trading at 13010 ranges with 13200-13300 still acting as critical resistance zone; on the lower side 12850-12900 ranges may act as important support.

Historic correlation between DX Vs DJIA suggests the short-term and medium-term trend being sideways where as the long-term trend is still dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis.

NYMEX Crude is trading weak after slipping again from $97.50 ranges to currently trade at $94.65 ranges. Historic resistance is seen in the ranges of $98.20 ranges, further rally to $102 ranges can be expected only on daily close above $98.40 else the prices may drop to $93.10.

FX Pair          Trend         Resistance 2    Resistance 1    Support 1    Support 2

EURUSD         Sideways               1.2620             1.2570          1.2480          1.2425
USDJPY         Sideways                  78.85              78.65            78.30            77.90
GBPUSD         Sideways                1.5920             1.5880          1.5770          1.5720
USDCHF         Sideways                 0.9710            0.9660          0.9540          0.9480
EURJPY          Sideways                  99.20              98.60            97.80            97.00
AUDUSD         Sideways                1.0340            1.0320          1.0275           1.0220

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