5th April, 2011 – Daily Forex report by GFM Research

The U.S Dollar strengthened against the Euro and the Aussie Dollar but traded flat against the Cable, Japanese Yen and the Swiss Franc. Fed’s policies due for release late night would provide key direction for the FX Majors. The Dollar Index (DX) is expected to remain range bound between 76.60 and 75.50 with weaker bias. Daily close above 76.80 ranges would post short-term bottom.
The Dow is trading at historic resistance zone of 12300 to 12400 ranges. Historic correlation between the Dow Jones (DJIA) and DX may not be effective due to decoupling of correlation between the FX majors constituting the Dollar Index.
NYMEX Crude, May basis is trading firm above $108.00, though it is trading at critical resistance of $108.00-$109.00 ranges.


FX Pair        Support 2        Support 1          Resistance 1         Resistance 2

EURUSD          1.4130              1.4165                 1.4285                    1.4325
USDJPY            83.40                83.88                   84.80                      85.90
GBPUSD          1.6080              1.6110                 1.6200                     1.6335
USDCHF           0.9100              0.9150                 0.9300                    0.9400
EURJPY            118.30              118.90                120.60                     121.00
AUDUSD           1.0190             1.0255                 1.0380                     1.0415


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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.