28th October, 2011 – Daily Forex Report by GFM Research

The US Dollar tumbles on the event of Greece bailout by the European Union. The Dollar Index closed below 76.00 to enter historic congestion zone of 74.50-73.40 ranges. Consistent close below 73.00 would reinitiated long-term USD bearishness.
The benchmark equity index of the Dow Jones Industrials has closed above historic resistance of 11600 ranges to trade currently above 12000; consistent close above 12000 would resume long-term bullishness in DJIA. Historic correlation between DJIA and DX is suggesting Greenback weakness though it may trade sideways for some time.
In NYMEX December Crude is approaching the short-term target of $95.00. Historic congestion is seen in the ranges of 95.00-101.20.


FX Pair           Support 2            Support 1             Resistance 1              Resistance 2


EURUSD              1.4010                  1.4100                   1.4250                       1.4510
USDJPY                  –                         74.50                    76.20                         77.00
GBPUSD              1.5970                  1.6030                   1.6120                       1.6200
USDCHF              0.8470                  0.8520                   0.8720                       0.8820
EURJPY               105.70                  106.60                   108.60                       109.00
AUDUSD              1.0460                  1.0540                   1.0750                       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.