26th August, 2011 – Daily Forex Report by GFM Research

The Dollar Index is trading flat amidst stable trading observed in most of the asset classes, especially in the equity markets across the World. The Dollar Index is range bound between 73.40-74.50 ranges in the short-term and the medium term range is capped between 73.40-76.70; 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 Crude, October basis is range bound between $83.20 and $87.00, either side breakout would establish trend.

FX Pair        Support 2         Support 1         Resistance 1             Resistance 2

EURUSD         1.4300                1.4380               1.4520                       1.4670
USDJPY           76.00                  76.40                 77.30                        78.20
GBPUSD         1.6220                1.6250               1.6350                       1.6400
USDCHF         0.7630                0.7750               0.8080                       0.8190
EURJPY         109.50                 110.30               112.00                       113.30
AUDUSD        1.0320                 1.0430               1.0550                       1.0640

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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.