22nd August, 2011 – Daily Forex Report by GFM Research

The Dollar Index again took support at 73.50-74.00 ranges, which happens to be very important support; most of the asset classes, especially the equity bourses succumbed to selling pressure resulting in the Dollar Index recovering again from important support of 74.00 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.

NYMEX October Crude after it sold off about 8% from $89.00 ranges to on Thursday, bounced off from $79.40 to currently trade at $81.40 ranges

FX Pair    Support 2       Support 1       Resistance 1        Resistance 2

EURUSD       1.4140             1.4240               1.4415                1.4520
USDJPY            –                   76.00                 77.30                 78.20
GBPUSD       1.6360             1.6410               1.6570                1.6600
USDCHF       0.7630             0.7750               0.8080                0.8230
EURJPY        109.00             109.50               110.90               111.30
AUDUSD       1.0240             1.0320               1.0440               1.0640

GFM Research Private Limited

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