4th May, 2011 – Daily Forex Report by GFM Research

Cable succumbed to profit taking against the Greenback; after the Dollar Index (DX) hitting low of 72.90 ranges, the U.S Dollar stabilized against most of the FX majors; tight trading pattern was observed in EURUSD, USDJPY, USDCHF and AUDUSD; where as the Cable has lost more than 150 pips.
The Dow Jones Industrials (DJIA) is trading consistently above the major support of 12720 ranges, DJIA Vs DX correlation suggests weakening of the U.S Dollar though caution is spelt out in case of DJIA as it is entering major resistance zone of 12900-13100. The U.S Dollar seems to be over sold against most of the FX majors and short covering may be witnessed.
NYMEX Crude June basis after facing stiff resistance at $114.00 upper ranges sold off below the critical support of $110.80 and currently trading at $110.80.


FX Pair      Support 2      Support 1      Resistance 1      Resistance 2

EURUSD       1.4650             1.4730             1.4870                1.5000
USDJPY         80.00               80.60               81.40                 82.40
GBPUSD       1.6350             1.6410             1.6590                1.6665
USDCHF       0.8530             0.8590             0.8670                0.8715
EURJPY        117.90             118.80            120.80                121.60
AUDUSD       1.0680             1.0760            1.0900                1.0950

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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.