17th May, 2011 – Daily Forex Report by GFM Research

Dollar looses shine after ten consecutive days appreciation; it seems that focus is increasing on the Fed’s decision about the interest rate decision.
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 trading at $97.34; 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       1.3990           1.4090               1.4180                   1.4223
USDJPY         80.00             80.70                 81.20                     82.10
GBPUSD       1.6090           1.6145               1.6245                    1.6280
USDCHF       0.8700           0.8776               0.8866                    0.8900
EURJPY        113.00           114.80               116.40                    117.80
AUDUSD       1.0435           1.0510               1.0620                    1.0740

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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.