2nd May, 2011 – Daily Forex Report by GFM Research

Stronger equity bourses, especially the Dow Jones Industrials (DJIA) the weakening of U.S Dollar against the majors. The Dollar Index (DX) has hit lifetime low of 73.00 during last Friday’s trade; only consistent daily close above 74.80 ranges would post short-term bottom.
The Dow Jones Industrials (DJIA) is trading consistently above the major support of 12600 ranges, DJIA Vs DX correlation suggests weakening of the U.S Dollar. Caution is spelt out in case of DJIA as it is entering major resistance zone of 12900-13100. Important support for DJIA is seen at 12600 ranges and key resistance for DX is seen at 74.80 ranges. NYMEX Crude June basis is facing stiff resistance at $113.00 upper ranges, currently trading at $112.26; $114.00 is expected to act as major barrier from where correction was witnessed on April 11, 2011.

FX Pair      Support 2      Support 1      Resistance 1      Resistance 2

EURUSD      1.4700             1.4730           1.4850                1.5000
USDJPY        80.70               81.00             82.40                 83.40
GBPUSD      1.6600             1.6630           1.6720                1.6756
USDCHF      0.8585             0.8630           0.8700                0.8725
EURJPY      119.40              120.00           121.60                123.00
AUDUSD     1.0760              1.0860           1.1000                1.1040

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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.