15th July, 2011 – Daily Forex Report by GFM Research

The Greenback traded flat after it has depreciated heavily on Wednesday, the 13th on the back of widened trade deficit.
Key equity index, Dow Jones Industrials (DJIA) is expected to find resistance in the zone of 12700-12800 which is historical congestion zone; consistently trading above 12400 reinitiate long-term rally in DJIA, whereas weekly close below 12300 would push DJIA into range bound trading pattern. Historic correlation between DJIA Vs DX suggests the major trend is still bearish in the Dollar Index though short covering can be expected; only weekly close above 76.70 in case of DXU11 would result in long term trend reversal in the US Dollar.
NYMEX August Crude (CLQ11) is expected to remain range bound between $95.00 and $99.80.

FX Pair        Support 2         Support 1              Resistance 1            Resistance 2


EURUSD        1.4050                1.4120                      1.4330                     1.4380
USDJPY          78.00                  78.50                        79.60                       80.20
GBPUSD        1.6000                1.6060                      1.6240                     1.6300
USDCHF           –                      0.8000                      0.8208                     0.8250
EURJPY         111.00                111.60                      113.40                     114.10
AUDUSD        1.0650                1.0690                      1.0780                     1.0840


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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.