23rd May, 2011 – Daily Forex Report by GFM Research

The Greenback strengthens across the board; U.S Dollar gained most against the Euro where as remained flat against the Aussie Dollar and the Cable; 74.40 is expected to act as critical support for Dollar Index (DXM11), only weekly close below 74.00 would result in continuation of bearish Greenback; on the higher side 76.50 ranges is expected to act as intermediate resistance. Weekly close above 76.50 would post short-term bottom in the Dollar Index.
Benchmark equity index of the Dow Jones Industrials (DJIA) is trending sideways with major support at 12200 and resistance at 12800; historic correlation between DX and DJIA suggests sideways trend in Dollar Index.
NYMEX Crude (CLN11) is trading range bound between $101.50 and $95.00; $95.00 ranges is expected to act as important support.

FX Pair      Support 2      Support 1      Resistance 1      Resistance 2

EURUSD       1.3865            1.4000            1.4163                1.4212
USDJPY         81.20              81.50              82.20                 83.00
GBPUSD       1.6020            1.6160            1.6274               1.6310
USDCHF       0.8700            0.8750            0.8870               0.8900
EURJPY       113.00            114.30            115.90               116.20
AUDUSD      1.0410           1.0500            1.0610                1.0720

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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.