Market Commentary The U.S Dollar traded mixed against the major pairs, wherein it has appreciated by more than 100 pips against the Swiss Franc and depreciated by more than 60 pips against the Aussie Dollar and traded flat by the end of New York close against the Cable and the Euro. The Dollar Index (DXU11) after taking support at 73.90 recovered beyond 75.00 but found resistance at 75.30 ranges; DXM11 may trade sideways with 73.90 acting as very important support and 75.60 acting as resistance only weekly close below 73.90 would result in further weakness reinitiating long-term bearishness in the USD. Key equity index, Dow Jones Industrials (DJIA) has broken important trend line support at 12200 ranges on Friday, June 03,2011 to currently trade at 12055 ranges; 11600-11700 ranges is expected to act as final support for DJIA. Historic correlation between DJIA Vs DX suggests sideways trend in the Dollar Index with probable short covering in near the near term. NYMEX Crude July basis is trading in sideways trend between $102.70 and $96.00. $95.00 is expected to act as decent support, only breach of $95.00 would result if further weakness.

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