25th May, 2011 – Daily Forex Report by GFM Research

The U.S Dollar is trading mixed, where as the Greenback is showing resilience against the Cable, the Aussie Dollar and the Common Currency are still trading weaker.
The Dollar Index (DXM11) has reached major resistance zone of 76.50; currently it is hovering in the ranges of 76.00-76.50; weekly close above 76.50 would post short-term bottom. On the lower side, 75.00 is expected to act as critical support for Dollar Index (DXM11), only weekly close below 74.40 would result in continuation of bearish Greenback.
Benchmark equity index of the Dow Jones Industrials (DJIA) is trending sideways with major support at 12100-12200 and resistance at 12600; historic correlation between DX and DJIA suggests sideways trend in Dollar Index with stronger bias towards U.S Dollar.
NYMEX Crude (CLN11) is trading range bound between $105.00 and $95.00; $95.00 ranges is expected to act as important support and $103.50 is expected to act as immediate resistance.

FX Pair      Support 2      Support 1      Resistance 1      Resistance 2

EURUSD      1.3865              1.3970           1.4154              1.4260
USDJPY        81.20                81.50             82.20               83.00
GBPUSD      1.5990              1.6070           1.6220              1.6280
USDCHF      0.8705              0.8750           0.8940              0.9020
EURJPY       113.00              114.30           115.60             116.20
AUDUSD      1.0380              1.0410           1.0570             1.0600

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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.