27th May, 2011 – Daily Forex Report by GFM Research

The Dollar Index (DXM11) taking resistance at 76.50 ranges is lower at 75.20 ranges; weekly close below 75.00 ranges would result in continuation of the long-term dollar weakness.
Benchmark equity index of the Dow Jones Industrials (DJIA) recovered smartly from the support zone of 12200 ranges, immediate resistance is seen at 12450 and major trend is expected to establish above 12600; historic correlation between DX and DJIA suggests sideways trend in Dollar Index with weaker Dollar.
NYMEX Crude (CLN11) is trading range bound between $105.00 and $95.00; $95.00 ranges is expected to act as important support and $102.70 is expected to act as immediate resistance.

FX Pair      Support 2      Support 1     Resistance 1      Resistance 2

EURUSD      1.4040            1.4120           1.4310                 1.4350
USDJPY        80.20              80.70             81.60                   82.10
GBPUSD      1.6260            1.6330           1.6490                 1.6580
USDCHF          –                 0.8550           0.8660                 0.8720
EURJPY       114.60            115.10           116.50                 117.00
AUDUSD     1.0580            1.0630           1.0750                  1.0830

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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.