28th December, 2011 – Daily Forex Report by GFM Research

Flat trading day was witnessed in most of the FX majors but for the Cable which was volatile on the event of low volumes. Major trend is range bound between 73.40 and 81.40; the medium trend is bullish till 77.50 ranges are holding on weekly closing basis, 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 is range bound between 11600 and 12380 with positive bias; 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 bearishness in long-term, but if 81.40 is given away on weekly closing basis; long-term bottom would be posted in the USD.
NYMEX Feb Crude is currently trading at $101.20. Historic support is seen in the ranges of $90.80-$91.25 with $102.40 still pending in short-term.

FX Pair      Support 2        Support 1      Resistance 1           Resistance 2

EURUSD        1.2960               1.3000            1.3130                      1.3210
USDJPY          77.20                 77.55              78.40                       79.00
GBPUSD        1.5550               1.5600            1.5720                      1.5770
USDCHF        0.9120                0.9270           0.9490                      0.9540
EURJPY         100.20               101.00            101.80                      102.40
AUDUSD        1.0050               1.0090            1.0210                      1.0270

For trading calls, contact us at

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.