Market Commentary
The Dollar Index (DX) again finds resistance at 79.00 ranges since April, 2010, resulting in sell off in benchmark equity index of Dow Industrials (DJIA). Next leg of weakness in the USD is expected only on the DX closing below 78.80 on daily basis.
The benchmark equity index (.DJIA) after closing above the historic congestion of 13400-13500 gained consistently to currently trade at 13916 ranges with 14000 mark acting as psychological barrier and 14200 ranges being historic high.
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-Down
1.3650
1.3565
1.3410
1.3370
USDJPY
Up
93.20
92.80
92.00
91.60
GBPUSD
Sideways-Down
1.5840
1.5765
1.5670
1.5600
USDCHF
Sideways
0.9140
0.9120
0.9050
0.9000
EURJPY
Sideways-Up
126.60
125.70
123.80
123.00
AUDUSD
Sideways
1.0500
1.0480
1.0360
1.0340
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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.