20 December, 2011 – Daily Forex Report by GFM Research

The Dollar Index is trading range bound on the advent of long holiday season; Major trend is range bound between 73.40 and 81.40 where as the medium trend is bullish till 77.50 ranges are holding, though 81.40 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 has again found resistance at 12300 ranges and has been falling consistently since couple of weeks to currently trade at 11820 ranges; 11600 ranges is expected to act as short-term support, only weekly close below 11600 would induce further sell off. Historic correlation between DX Vs DJIA is signifying USD is still bearish in the long-term, though 81.40 if given away on weekly closing basis would post long-term bottom in the USD.
NYMEX January Crude is currently trading at $94.35. Historic support is seen between $90.80-$91.25.

FX Pair         Support 2            Support 1          Resistance 1                 Resistance 2

EURUSD           1.2900                 1.2980                  1.3080                          1.3120
USDJPY             77.00                   77.25                    78.20                           78.40
GBPUSD           1.5460                 1.5000                  1.5565                          1.5600
USDCHF           0.9250                 0.9290                  0.9400                          0.9430
EURJPY            100.60                 101.00                  101.80                          102.40
AUDUSD           0.9860                 0.9900                  0.9980                          1.0020

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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.