Daily FX perspective October 19, 2012 – GFM Research

The US Dollar gained across the board after the Dollar Index again found support at 79.00 ranges. The Dollar appreciated most against the Cable, by more than 100 pips followed by the Euro and the Swiss France whereas traded flat against the Aussie. The short term trend is still range bound between 80.40 and 79.00; daily close below 78.80 would result in further weakening of the dollar index to 78.15 ranges.

The benchmark equity index (.DJIA) is currently trading stable at 13545 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 78.00-78.20 ranges.

EURUSD      Sideways                     1.3170             1.3110          1.3045          1.3000      
USDJPY      Sideways                       79.90               79.50            79.00           78.70      
GBPUSD     Sideways-Down             1.6170             1.6090          1.6000          1.5960      
USDCHF     Sideways                       0.9340            0.9280          0.9200           0.9140      
EURJPY     Sideways-Up                  105.40             104.50          103.10          102.50      
AUDUSD    Sideways-Up                  1.0470             1.0430          1.0330          1.0300

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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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