21st April, 2011 – Daily Forex report by GFM Research

The Dollar Index (DXM11) continued depreciating against the major pairs after resuming bear trend on the event of key equity index (.DJIA) stabilizing beyond 12400 ranges. The Common Currency appreciated by more than 160 pips; the Cable appreciated by more than 60 pips; and the Aussie Dollar continued to trade in uncharted territory against the Greenback.
The Dow (.DJIA), as expected found support at the major support of 12100. With the Dow taking support at 12100 and consistently trading beyond previous resistance zone of 12400 ranges, DJIA Vs DX correlation suggests weakening of the U.S Dollar. Important support of .DJIA is seen at 12100 ranges and key resistance for DX is seen at 76.10 ranges. NYMEX Crude June basis stabilized at $106 ranges and currently trading at $112.20 ranges.



FX Pair        Support 2          Support 1          Resistance 1        Resistance 2

EURUSD           1.4390               1.4430                  1.4630                 1.4674
USDJPY             81.30                 82.00                    82.60                   83.60
GBPUSD           1.6300               1.6390                   1.6522                 1.6572
USDCHF           0.8800                0.8840                  0.8925                 0.8956
EURJPY            118.50                119.20                  120.70                 121.30
AUDUSD          1.0600                 1.0660                       –                        –

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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.