Daily FX perspective October 03, 2012 – GFM Research

The Dollar traded flat against the major pairs of the Euro and the Cable but has appreciated by more than 100 pips against the Aussie on the event of profit taking witnessed on most of the asset classes, especially the bench mark equity index of the Dow Industrials (.DJIA). The benchmark equity index (.DJIA) is currently trading flat at 13460 ranges; only daily close below 13110 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 with immediate support seen in 78.70-78.20 ranges.

NYMEX Crude has found support at $89.00 ranges but unable to sustain above $93.20, succumbed to profit taking to currently trade flat at $91.80 ranges. Short term trend is sideways with $87.15 ranges acting as key support and $94.10 range acting as resistance.

EURUSD      Sideways                    1.3000             1.2960          1.2830          1.2790
USDJPY      Sideways-Up                 79.00               78.70            78.00            77.70
GBPUSD     Sideways-Down            1.6180             1.6150          1.6100              –
USDCHF     Sideways                     0.9460             0.9430           0.9350         0.9320
EURJPY     Sideways-Up                 101.60             101.00           100.50         100.00
AUDUSD    Sideways-Down            1.0320              1.0230           1.0160            –

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