19th May, 2011 – Daily Forex Report by GFM Research

The U.S Dollar starts trading weak again; unable to trade beyond 76.50 the Dollar Index (DX) succumbed to profit taking at 76.10 ranges to trade currently at 75.40. 
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 major support seen at 74.40 and resistance seen at 76.50, June basis.
NYMEX Crude July basis after finding support at $95.00 ranges, is again trading at $100.25; weekly close above $104.50 would establish major rally else the trend the trend may become sideways between $104.50 and $95.00 with $95.00 acting as short-term support.

FX Pair      Support 2      Support 1      Resistance 1      Resistance 2

EURUSD      1.4180            1.4200             1.4380                1.4520
USDJPY        80.80              81.20               82.10                 83.00
GBPUSD      1.5920            1.6077             1.6190                1.6220
USDCHF      0.8700            0.8765              0.8840                0.8870
EURJPY       115.20            115.50             116.55                117.80
AUDUSD      1.0500            1.0610             1.0730                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.