12th October, 2011 – Daily Forex Report by GFM Research

The Greenback traded dull against most of the FX majors, the short-term trend is still weak till the Dollar Index does not close above 78.50 on daily basis. Though 76.00 ranges are expected to again act important support in medium term. Historic resistance in the Dollar Index is seen in the ranges of 79.50 to 80.20 to 81.30.
Key equity index of Dow Jones Industrials (DJIA) has found support again in the ranges of 10500-10600 ranges posted smart recovery to currently trade at 11400+ ranges; 11500-11680 is expected to act as intermediate resistance. Historic correlation between DJIA Vs DX suggests short-term top being posted in the USD and short-term bottom being posted in the Dow.
NYMEX November Crude after testing support of $75.50 posted smart recovery to trade currently at $83.50; daily close above $80.20 suggests short-term bottom has been posted with immediate targets being $86.00 and $88.40.


FX Pair        Support 2         Support 1        Resistance 1            Resistance 2


EURUSD           1.3460              1.3540              1.3790                     1.3875
USDJPY                –                    76.00                77.40                      78.00
GBPUSD           1.5510              1.5580              1.5730                     1.5820
USDCHF           0.8780              0.9000              0.9260                     0.9330
EURJPY            103.00              103.75              105.40                     106.30
AUDUSD           0.9810              0.9900              1.0050                     1.0145


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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.