Daily FX perspective October 121, 2012 – GFM Research

The Dollar Index lost more than 50 points despite lackluster trading witnessed in most of the asset classes. The Greenback lost most against the Common currency and the Swiss Franc followed by the Cable. Currently the short term trend is range bound between 80.40 and 79.00.

The benchmark equity index (.DJIA) is currently trading weak at 13350 ranges with immediate support seen at 13260-13280 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 with immediate support seen in 78.70-78.20 ranges.

EURUSD     Sideways-Up                 1.3040              1.2940          1.2870          1.2810
USDJPY     Sideways                        78.90                78.65            78.30            78.00
GBPUSD     Sideways                      1.6080              1.6050           1.6000         1.5960
USDCHF     Sideways-Down             0.9440              0.9400           0.9295          0.9250
EURJPY     Sideways                       103.00             102.50           101.00          100.40
AUDUSD    Sideways-Up                  1.0350              1.0320           1.0230          1.0210

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Note:
Economic Data Source: www.briefing.com
GMT- Greenwich Mean Time, ET-Eastern Time (U.S), IST-Indian Standard Time

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