18th August, 2011 – Daily Forex Report by GFM Research

The US Dollar Index lost about 0.25% to near important support of 73.40 ranges, most of the asset classes are trading stable after witnessing unprecedented volatility during past couple of weeks especially the equity bourses across the world; the Dow Futures are trading weaker after testing important resistance of 11500 ranges to currently trade at 11300 ranges. The Dollar Index is range bound between 73.40-76.70 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. Since 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 $87.50 ranges; $90.60 ranges may act as immediate resistance for NYMEX Oct Crude.

FX Pair     Support 2        Support 1       Resistance 1       Resistance 2

EURUSD      1.4280              1.4345              1.4520                  1.4570
USDJPY          –                     76.00                77.30                    78.20
GBPUSD      1.6360              1.6425              1.6540                  1.6600
USDCHF      0.7780              0.7840              0.8080                  0.8230
EURJPY       109.00              109.70              111.00                  111.30
AUDUSD      1.0360              1.0440              1.0600                  1.0640

GFM Research Private Limited

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.