26th April, 2011 – Daily Forex Report by GFM Research

The U.S Dollar seems to have stabilized after previous week’s losses. The Dollar Index (DXM11) is witnessing support at 74.00 ranges though the major trend is still bearish; only consistent daily close above 75.40 ranges would post short-term bottom. The Common Currency is reaching major resistance of 1.4720 ranges from where it sold off during mid December, 2009.
The Dow Jones Industrials (DJIA) is trading consistently above the major support of 12400 ranges, DJIA Vs DX (Dollar Index) correlation suggests weakening of the U.S Dollar. Caution is spelt out in case of DJIA as it is entering major resistance zone of 12500-12700. Important support for DJIA is seen at 12400 ranges and key resistance for DX is seen at 75.40 ranges. NYMEX Crude June basis is facing stiff resistance at $113.00 upper ranges; $114.00 being major barrier from where correction was witnessed on April 11, 2011.

FX Pair     Support 2     Support 1     Resistance 1    Resistance 2

EURUSD      1.4430           1.4490           1.4630              1.4670
USDJPY        80.70             81.10             82.60                83.40
GBPUSD      1.6390           1.6450           1.6580              1.6672
USDCHF      0.8740           0.8770           0.8845              0.8890
EURJPY      115.60            116.70           119.50              120.00
AUDUSD     1.0630            1.0680           1.0778              1.0794

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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.