02-Feb-2011 – FX Daily Report by GFM Research

Dollar extended its loss against euro and settled at 1.3828 yesterday after making days low of 1.3843. US stocks and Dow Jones advanced yesterday after ISM manufacturing Index beat estimate. Dow Jones Industrial Average made new high of 12050.72 since June 2008. Copper maintained its firm momentum and made new life time high of $9,980 on LME and $4.5595 on COMEX. Whereas, crude faced resistance near its recent high of $93 and settled at $90.40 yesterday against previous close of $92.19. US ADP employment figures, which is due today, will probably show payroll boosted by 140,000 in January 2011 after 297,000 gain in December 2010. Traders holding long in EURUSD are advised to park profit in some of their positions near 1.3940, where technically profit booking is expected and can take charge near 1.3750 level.

Instrument      Trend                       Trading Strategy
EURUSD              Up             Buy in the ranges of 1.3750-1.3745 S/L: Below 1.3700 TGT:1.3940
GBPUSD              Up             Buy in the ranges of 1.6050-1.6060 S/L: Below 1.6024 TGT:1.6230
USDCHF     Sideways Down     Sell in the ranges of 0.9405-0.9410 Double Buy: Above 0.9457 TGT: 0.9300
                                          Buy at 0.9319-0.9322 S/L: Below 0.9299 TGT:0.9405
USDJPY     Sideways Down     Sell in the ranges of 82.00-82.10 S/L: Above 82.25 TGT: 80.95 
EURJPY              Up              Buy in the ranges of 112.20-112.10 S/L: Below 111.65 TGT1:113.80 TGT2:114.70
AUDUSD           Up                Buy in the ranges of 1.0007-1.0010 S/L: Below 0.9965 TGT:1.0254