25th July, 2011 – Daily Forex Report by GFM Research

The USD traded flat against most of the majors, 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, 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.
NYMEX September Crude (CLU11) is expected to remain range bound between $95.00 and $99.80, either side breakout would establish trend.


FX Pair           Support 2             Support 1           Resistance 1         Resistance 2


EURUSD           1.4260                     1.4315                  1.4545                 1.4610
USDJPY             77.80                       78.10                    78.80                   79.30
GBPUSD           1.6190                     1.6250                  1.6360                 1.6430
USDCHF           0.8000                     0.8100                  0.8200                 0.8275
EURJPY           111.40                      112.20                  113.60                 114.40
AUDUSD          1.0720                      1.0760                  1.0880                 1.0960


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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.