16th May, 2011 – Daily Forex Report by GFM Research

Increase in Michigan Sentiment pushes the U.S Dollar to furthers highs on Friday; the Greenback continued strengthening for the consecutive week after the Dollar Index (DX) hitting low of 72.89 ranges couple of weeks earlier.
Benchmark equity index of the Dow Jones Industrials (DJIA) unable to trade beyond 12800 ranges weakened on Friday resulting in the DX strengthening beyond 75.50; the Dow needs to close above 13000 for bull trend to establish; Historic correlation between the DX Vs DJIA suggests further strengthening if the DX for couple of days more.
NYMEX Crude June basis after finding support at $95.00 ranges, is again at $99.34; only weekly close above $104.50 the trend may become sideways with weaker bias targeting $88.00 over couple of weeks.


FX Pair      Support 2      Support 1      Resistance 1      Resistance 2

EURUSD       1.3720             1.3990             1.4150                1.4223
USDJPY         80.00               80.50               81.20                 82.00
GBPUSD       1.6030             1.6145             1.6230                1.6280
USDCHF       0.8820             0.8877             0.8990                0.9024
EURJPY       112.00             112.80             115.00                115.60
AUDUSD      1.0355            1.0496              1.0620                1.0740

For trading calls, contact us at

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.