Market Commentary
The US Dollar appreciated across the board wherein the Sterling continued to depreciate to currently trade at 1.5130 ranges followed by the Euro and next the Japanese Yen which is trading near its year lows against the Greenback. The Dollar Index (DX) is consistently trading above the critical resistance of 81.20 ranges and is poised to test 82.30 ranges with 81.70 acting as intermediate resistance.
Positive correlation was observed between the Dow Industrials (DJIA) and the Dollar Index (DX) on Friday wherein the Dow gained by more then 100 points despite the stronger USD. The benchmark equity index of the Dow Industrials (DJIA) is currently trading at 13998, and may trade sideways between 14000 and 13800; on breach of 13800 ranges, it is poised to retest historic congestion observed in the ranges of 13500-13600.
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
1.3280
1.3240
1.3120
1.3020
USDJPY
Sideways
94.00
93.40
92.70
92.00
GBPUSD
Down
1.5300
1.5220
1.5060
1.4950
USDCHF
Sideways-Up
0.9420
0.9350
0.9280
0.9250
EURJPY
Sideways-Down
124.60
124.00
122.80
122.00
AUDUSD
Sideways-Down
1.0380
1.0340
1.0180
1.0150
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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.