Market Commentary
After trading consistently at the short term support of 79.70 ranges for couple of days, the Dollar Index found support at 79.70 to appreciate to 80.25 ranges. Historic inverse correlation between our benchmark equity index of the Dow Industrials (.DJIA) was not observed yesterday wherein DJIA also gained by about 50 points despite the Dollar Index appreciating.
The benchmark equity index (.DJIA) is currently trading at 13070 with 13080-13100 acting as intermediate resistance. Only daily close below 12400 would put major trend in jeopardy else as the index consistently trades beyond 13300, major rally reinitiates.
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 Resistance2 Resistance1 Support1 Support2
EURUSD Down 1.3080 1.3030 1.2900 1.2880
USDJPY Sideways 83.80 82.80 81.60 81.20
GBPUSD Down 1.6130 1.6070 1.6030 1.5980
USDCHF Up 0.9370 0.9340 0.9290 0.9250
EURJPY Sideways-Down 107.80 107.20 106.30 105.50
AUDUSD Sideways 1.0540 1.0480 1.0420 1.0380
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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.