21st February, 2012 – Daily Forex Report by GFM Research

The Dollar Index resumes bearish trend after hitting short-term resistance of 80.20 to currently trade at 79.00; daily close below 78.30 may drag the Greenback further lower. The benchmark equity index of the Dow Jones Industrials is trading firm above 13000 mark; consistent close on daily basis would result in new trend.
The long-term trend is still bearish till the Dollar Index does not close above 83.50 on monthly basis. Historic congestion is seen in the ranges of 81.40-83.50. Historic correlation between DX Vs DJIA is signifying USD bearishness in long-term, only if 83.50 is given away on monthly closing basis; long-term bottom would be posted in the USD.
NYMEX Feb Crude after finding support at $96.00 broke out beyond $102.20 ranges to currently trade at $105.00 ranges with $105.50 still pending objective.


FX Pair          Trend               Support 2      Support 1        Resistance 1       Resistance 2


EURUSD        Sideways              1.3150            1.3200              1.3310                 1.3370
USDJPY      Sideways-Up              78.90             79.30                79.90                   80.80
GBPUSD        Sideways              1.5760            1.5800              1.5905                 1.6060
USDCHF     Sideways-Down        0.8990            0.9070              0.9170                 0.9210
EURJPY     Sideways-Up             104.00            104.40              106.30                 107.40
AUDUSD    Sideways-Up             1.0620            1.0690              1.0800                 1.0860


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: 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.