18th May, 2011 – Daily Forex Report by GFM Research

Dollar Index (DX) falls unable to trade beyond 76.50; profit taking was witnessed in the U.S Dollar across the board after the Dollar Index hit major resistance zone on 76.20-76.50 ranges to currently trade at 75.28.
Benchmark equity index of the Dow Jones Industrials (DJIA) is trending sideways with major support at 12200 and 12800; historic correlation between DX and DJIA suggests sideways trend in Dollar Index with bearish sentiment; only daily close above 76.50 (DXM11) would result in short-term bottom being posted.
NYMEX Crude June basis after finding support at $95.00 ranges, is again trading at $97.84; only weekly close above $104.50 would establish major rally else the trend the trend may become sideways between $104.50 and $95.00

FX Pair      Support 2      Support 1      Resistance 1      Resistance 2

EURUSD      1.4180           1.4200              1.4410               1.4520
USDJPY        80.60             80.90                82.10                83.00
GBPUSD      1.6200           1.6230              1.6350               1.6430
USDCHF      0.8700           0.8765              0.8866               0.8900
EURJPY      114.50           115.00              116.55               117.80
AUDUSD    1.0500           1.0610               1.0753               1.0840

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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.