8th December, 2011 – Daily Forex Report by GFM Research

The Dollar Index (December basis) is trading flat with 77.80 acting as important support on the event of flat to weaker trading in most of the asset classes especially the benchmark equity index of the Dow Industrials. Major trend is range bound between 73.40 and 81.20 where as the medium trend is bullish till 77.50 ranges are holding, 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 is trading sideways with weaker bias after record gains of more than 500 points on Nov 30, 2011; 12340 ranges may 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 if given away on weekly closing basis would post long-term bottom in the USD.

NYMEX January Crude is currently trading at $100.55. Bull trend to resume only on daily closing above $102.40.

FX Pair         Support 2           Support 1              Resistance 1           Resistance 2

EURUSD            1.3320                 1.3350                    1.3415                      1.3450
USDJPY               77.00                  77.40                      78.20                        78.40
GBPUSD             1.5580                1.5640                     1.5740                      1.5810
USDCHF             0.9050                 0.9200                    0.9320                       0.9340
EURJPY             102.50                 103.00                     104.80                      105.40
AUDUSD            1.0060                 1.0130                     1.0330                      1.0415

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.