3rd January, 2012 – Daily Forex Report by GFM Research

The Dollar Index again found resistance in the ranges of 81.00.  Major trend is range bound between 73.40 and 81.40; the medium trend is bullish till 77.50 ranges are holding on weekly closing basis, though 81.40 ranges would act as formidable resistance. Historic congestion is seen in the ranges of 79.50-80.70-81.20.
The benchmark equity index of the Dow Jones is range bound between 11600 and 12380 with positive bias; 11600 ranges is expected to act as short-term support, only weekly close below 11600 would induce further sell off. Historic correlation between DX Vs DJIA is signifying USD bearishness in long-term, but if 81.40 is given away on weekly closing basis; long-term bottom would be posted in the USD.
NYMEX Feb Crude is currently trading at $100.20. Historic support is seen in the ranges of $90.80-$91.25 with $102.40 still pending in short-term.


FX Pair         Support 2         Support 1       Resistance 1        Resistance 2


EURUSD         1.2900                 1.2950              1.3015                 1.3060
USDJPY           76.20                   76.65                77.10                  77.50
GBPUSD         1.5460                 1.5505              1.5580                  1.5610
USDCHF          0.9320                0.9360               0.9490                 0.9540
EURJPY               –                      99.10                 99.90                 100.30
AUDUSD          1.0160                1.0200              1.0330                  1.0410


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