Daily FX perspective November 22, 2012 – GFM Research

The Greenback traded mixed against the four FX majors, wherein it has depreciated against the Euro, the Swiss Franc and the GBP whereas the Yen continued to depreciate against the USD. The Dollar Index is trading at 80.90 ranges, still hovering around the short term resistance of 81.00-81.20 from where it sold off during September last.

The benchmark equity index (.DJIA) is trading at 12850 after slipping below the critical support of 12980 with 12450-12500 ranges acting as medium term support and 12980 acting as short term resistance. Only daily close below 12400 would result in further sell off else the index may inch higher to 12980 ranges.

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.


FX Pair     Trend             Resistance 2    Resistance 1    Support 1    Support 2


EURUSD    Sideways-Up              1.2960             1.2855          1.2820           1.2760
USDJPY         Up                         83.30              82.80            81.80             81.50
GBPUSD    Sideways-Up              1.6030             1.5980          1.5930           1.5880
USDCHF    Sideways-Down          0.9490             0.9410          0.9320           0.9280
EURJPY         Up                       108.40             107.60          104.80           104.50
AUDUSD    Sideways                  1.0530             1.0440          1.0330           1.0280


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