Daily FX perspective September 12, 2012 – GFM Research

The US Dollar continues to slip across the board; after the Dollar Index closed below 81.00 ranges it continued to slide to currently trade at 79.80 ranges; 78.20-78.90 is now the watch out support. The benchmark equity index of the Dow Industrials (.DJIA) is currently trading firm at 13333 ranges only daily close below 13170 would halt rally though 2007 highs of 14000 ranges would act as major barrier.

Historic correlation between DX Vs DJIA suggests the long-term trend is still dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis. Even the medium term trend has turned bearish after the Dollar Index breached 81.00 ranges and the index seems to be heading towards 78.90-78.20 ranges.

NYMEX Crude trading flat at $97.25. 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       Up                          1.3020              1.2980          1.2780          1.2720
USDJPY       Sideways-Down          78.30                78.00            77.70            77.50
GBPUSD       Up                          1.6150              1.6110          1.6020          1.5980
USDCHF       Down                      0.9480              0.9430          0.9320          0.9250
EURJPY       Sideways-Up              101.60             101.00            99.60            99.30
AUDUSD      Up                           1.0560              1.0510          1.0400          1.0360


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