Gain in US Dollar leads to sell off in most of the asset classes especially the equities; the benchmark equity index of Dow Industrials (.DJIA) has fallen more than 200 points to currently trade at 13340 ranges. 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 at 13340 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.
FX Pair Trend Resistance 2 Resistance 1 Support 1 Support 2
EURUSD Sideways 1.3170 1.3110 1.3000 1.2965
USDJPY Sideways-Up 80.40 79.90 79.30 79.00
GBPUSD Sideways-Down 1.6095 1.6070 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 1.0300 1.0280
GFM Research Private Limited
+91-40-40268383
support@gfmresearch.com
www.gfmresearch.com
Note:
Economic Data Source: www.briefing.com
GMT- Greenwich Mean Time, ET-Eastern Time (U.S), IST-Indian Standard Time
Disclaimer: This report contains the views of GFM Research Private Limited. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research Private Limited nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.