11th August, 2011 – Daily Forex Report by GFM Research

The US Dollar Index appreciates on the event of sell of seen in the equity bourses across the world. The Dollar Index is heading towards the support of 73.40-74.00 ranges; 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 Dow NYMEX October Crude has hit lows of $76.20 to recover beyond $80.00 to currently trade at $84.22.

FX Pair            Support 2          Support 1           Resistance 1            Resistance 2

EURUSD               1.4060                1.4135                 1.4400                      1.4510
USDJPY                    –                      76.00                   77.50                       78.20
GBPUSD               1.6050                1.6080                 1.6220                      1.6330
USDCHF               0.7180                0.7210                 0.7440                      0.7500
EURJPY                106.40               107.20                  110.00                      110.80
AUDUSD               0.9970               1.0100                  1.0390                      1.0470

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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.