29th December, 2011 – Daily Forex Report by GFM Research

Correction in benchmark equity index of the Dow Jones Industrials from historic resistance zone of 12300-12380 ranges  and Consumer Confidence numbers beating the street led to the Dollar Index appreciating by 1 point to close firm at 80.88. 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 $99.60. 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         1.2790              1.2860                 1.2980                     1.3080
USDJPY           77.20                77.55                  78.40                       79.00
GBPUSD         1.5380              1.5415                 1.5510                     1.5560
USDCHF         0.9320              0.9390                 0.9490                     0.9540
EURJPY           99.30                99.80                 101.00                     101.80
AUDUSD        0.9920               1.0020                1.0120                     1.0210

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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.