GFM Research Private Limited
GFM Research Private Limited
Market Commentary
The Dollar Index (DX) current is approaching trading at 79.50 ranges; medium term support is seen at 79.00 ranges; Dollar weakness may extend on weekly close below 78.70 ranges which may result in DX retesting the long term support zone of 73.20-75.00.
DX heavy weights, EURUSD and GBPUSD are trading near their historic resistance zone of 1.3920 and 1.6820 respectively. Daily close above the said ranges would result in commencement of new leg up for the Euro and the Cable.
As against the historic inverse correlation between the Dollar Index (DX) and the benchmark equity index of Dow Jones Industrial Average (DJIA), the benchmark equity index succumbed to selling pressure despite weaker Dollar. DJIA slips again from the major resistance zone of 16500-16600 ranges to test critical support of 16190; further rally may reinitiate only on daily close above 16650 else weakness may extend only below 16160 ranges.
This report contains the viewpoints of GFM Research. 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 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.
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