4th August, 2011 – Daily Forex Report by GFM Research

The US Dollar traded mixed wherein it has depreciated against the Euro and the Cable but has appreciated against the Swiss Franc, the Aussie Dollar and the Japanese Yen. Fierce intervention was seen by the BoJ to weaken the Yen after the Yen has hit all time high of 76.30 ranges against the US Dollar.
Historic correlation between the Dollar Index (DX) and the Dow Jones Industrials (DJIA) suggests long term bearishness in the USD though short covering may be witnessed in near term.
The Dollar Index is currently capped between 73.40 and 76.70 only weekly close on the either side would establish trend in the respective direction.
Taking queues from the weaker economic statistics, NYMEX October Crude traded weak and is currently trading at $91.88; $89.00 is expected to act as the final major support.


FX Pair             Support 2         Support 1            Resistance 1             Resistance 2


EURUSD             1.4180                 1.4270                 1.4510                      1.4680
USDJPY               77.50                   78.40                   80.20                       81.70
GBPUSD             1.6230                 1.6330                 1.6500                      1.6550
USDCHF             0.7600                 0.7660                 0.7810                      0.7840
EURJPY              111.00                 112.00                 114.00                      114.80
AUDUSD             1.0550                 1.0630                 1.0800                      1.0840


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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.