Daily FX perspective September 7, 2012 – GFM Research

The Dollar Index is currently trading flat at the critical support of 81.00 after the Greenback depreciated yesterday across the board especially against the Aussie. The short-term trend is still range bound between 81.00 and 82.10 with weaker bias; 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 firm at 13291 ranges after gaining more than 150 points on the event of weaker US Dollar.

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 after again corrected from $97.50 ranges. The short-term trend is range bound between $94.00 and $98.00; daily close above $98.40 would open door towards $102.00.

FX Pair        Trend            Resistance 2    Resistance 1    Support 1    Support 2

EURUSD      Sideways-Up          1.2820           1.2720        1.2590        1.2530
USDJPY      Sideways-Up            79.50             79.20          78.80          78.30
GBPUSD      Sideways               1.6030           1.5980        1.5920         1.5880
USDCHF      Sideways-Down      0.9635            0.9600       0.9500         0.9450
EURJPY      Sideways-Up           101.60            100.00         99.20          98.80
AUDUSD     Up                            –                 1.0360       1.0260         1.0230

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