04 Sep 2012: Daily FX perspective by GFM Research

The Dollar Index is currently trading near the critical support of 81.00 ranges to currently trade at 81.13 the short-term trend is still range bound between 81.00 and 82.10; 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 13116 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.

On the event of the US Dollar depreciating, NYMEX Crude is appreciating to currently trade at $97.12. Daily close above $98.40 would open door towards $102.00.

---

FX Pair         Trend         Resistance 2       Resistance 1       Support 1       Support 2

---

EURUSD        Sideways              1.2650                1.2630             1.2560             1.2530
USDJPY        Sideways                78.80                  78.50               78.10               77.90
GBPUSD        Sideways                –                       1.5920              1.5840            1.5820
USDCHF        Sideways              0.9650                 0.9560             0.9480            0.9450
EURJPY        Sideways                99.20                   98.90               98.00              97.80
AUDUSD       Sideways              1.0340                 1.0300              1.0220           1.0180

---

GFM Research Private Limited
+91-40-40268383
support@gfmresearch.com
www.gfmresearch.com