Market Commentary
The Dollar Index continued appreciating after finding support at 79.00 ranges to currently trade at 80.75 with 81.20-81.50 acting as short term resistance. As against historic inverse correlation between the benchmark equity index of the Dow Industrials (.DJIA) and Dollar Index (DX) direct correlation is observed since couple of days.
The benchmark equity index (.DJIA) recovered smartly from the session lows of 12800 ranges to currently trade at 13368 ranges with 13300-13400 ranges acting as the short term resistance. Only daily close below 12400 would put major trend in jeopardy else as the index consistently trades beyond 13300-13400, 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
Resistance 2
Resistance 1
Support 1
Support 2
EURUSD
Down
1.3190
1.3110
1.2980
1.2930
USDJPY
Up
88.80
88.30
87.20
86.90
GBPUSD
Sideways-Down
1.6170
1.6120
1.6030
1.5980
USDCHF
Sideways-Up
0.9350
0.9320
0.9220
0.9190
EURJPY
Sideways-Down
115.60
115.10
113.70
111.60
AUDUSD
Sideways
1.0520
1.0480
1.0415
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.