6th May, 2011 – Daily Forex Report by GFM Research

The U.S Dollar got oversold against most of the major pairs resulting in short covering in the USD across the board, seems to be changing in case of the Dollar Index (DXM11) though consistently trading above 74.50 will increase our conviction.
The Dow Jones Industrials (DJIA) is trading consistently above the major support of 12520 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 $100.00, $98.00 is the watch out support.


FX Pair      Support 2      Support 1      Resistance 1      Resistance 2

EURUSD      1.4290             1.4470            1.4580                1.4720
USDJPY        79.20               79.80             80.80                  81.40
GBPUSD      1.6190             1.6260           1.6450                1.6490
USDCHF      0.8530             0.8650           0.8780                0.8820
EURJPY      114.40             115.50            118.40                119.20
AUDUSD     1.0390             1.0530            1.0760               1.0820

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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.