16th February 2011 – FX Daily Report by GFM Research

Dow Jones (.DJIA) correlation continued to guide direction in most of the FX major pairs, though the Cable traded high against the Greenback in contrast to other pairs. The common currency settled marginally higher at 1.3496 yesterday against previous close of 1.3479 after facing resistance near previous high of 1.3558.  Cable rose most in last seven days and settled higher at 1.6133 after making day’s high of 1.6171. USDJPY managed to break strong resistance of 83.68 yesterday and could rise till 84.50 if sustains above 83.68. PPI Index (release due tomorrow) may give guidance to the market.

FX Pair        Support 2            Support 1            Resistance 1            Resistance 2

EURUSD        1.3365                 1.3428                  1.3570                   1.3630
GBPUSD        1.6035                 1.6084                  1.6196                   1.6246
USDCHF        0.9540                  0.9578                 0.9685                    0.9740
USDJPY           82.97                    83.48                   83.90                      84.50
EURJPY         112.40                  112.90                 113.73                    114.05
AUDUSD        0.9839                  0.9940                 1.0018                    1.0075

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