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

Dollar strengthened against almost every pair on the back of positive US numbers released yesterday coupled with ECB President’s intention of not boosting interest rates in near future. ECB Monetary announcement dented the up rally of Euro, which corrected almost 1.40 percent yesterday. USDCHF managed to hold support near 0.9380-0.9300 and rallied yesterday to 0.9525. US Jobless claims declined to 415,000 against industry forecast of 425,000. Factory Orders for December surprisingly rose by 0.2 per cent against median estimate of 0.4 per cent decline.

ISM Manufacturing numbers jumped to 59.4 against consensus of 57. NYMEX Crude Oil settled at $90.58 against previous close of $90.92 trading in a tight range of $1.50. EURUSD likely to test support area of 1.3560-1.3500, before rallying further.

Instrument               Trend                   Trading Strategy
EURUSD                      Down         Sell in the ranges of 1.3722-1.3725 S/L: Above 1.3825 TGT:1.3560
                                                  Buy in the ranges of 1.3560-1.3555 S/L: Below 1.3488 TGT:1.3720
GBPUSD               Sideways down  Sell in the ranges of 1.6200-1.6180 S/L: Above 1.6278 TGT:1.6065
USDCHF                       Up            Buy at 0.9425-0.9420 S/L: Below 0.9370 TGT:0.9520
USDJPY                   Sideways        Buy in the ranges of 81.30-81.50 S/L: Below 80.93 TGT: 82.45 
EURJPY                   Sideways        Sideways in 110.80-113.00 range 
AUDUSD                      Up            Buy in the ranges of 1.0104-1.0110 S/L: Below 1.0055 TGT:1.0254

Disclaimer: This report contains the viewpoints of GFM Research. 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 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.

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