2nd December, 2011 – Daily Forex Report by GFM Research

The Dollar Index again take resistance in the ranges of 79.50 to currently trade at 78.30 resulting in major rally in most of the asset classes especially the benchmark equity index of the Dow Jones Industrials. Major trend is range bound between 73.40 and 81.20 where as the medium trend is bullish though 81.20 ranges would act as formidable resistance. Historic congestion is seen in the ranges of 79.50-80.70-81.20.
The benchmark equity index of the Dow Jones Industrials resumed rally; 12340 ranges post immediate resistance, weekly close beyond 12400 would establish major bull trend. Historic correlation between DX Vs DJIA is signifying USD is still bearish in the long-term, though 81.20 need to be given away on weekly basis.
NYMEX January Crude is currently trading at $100.20. Bull trend to resume only on daily closing above $101.70.

FX Pair           Support 2              Support 1          Resistance 1            Resistance 2

EURUSD              1.3370                    1.3415                  1.3500                     1.3540
USDJPY                77.00                      77.40                    78.10                      78.50
GBPUSD              1.5590                    1.5640                  1.5740                     1.5800
USDCHF              0.8980                    0.9090                  0.9280                     0.9340
EURJPY               104.00                    104.30                  105.00                     105.30
AUDUSD              1.0080                    1.0140                  1.0340                     1.0405

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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.