1st July, 2011 – Daily Forex Report by GFM Research

The Dollar Index (DXU11) depreciates for the straight fourth trading session to trade below the critical support of 74.70 on the event of recovery witnessed in the key equity index of the Dow Jones Industrials (DJIA).  The Greenback traded mixed wherein it has depreciated against the Euro and the Aussie Dollar whereas appreciated against the Swiss France; the USD closed flat against the Cable though it has appreciated more than 100 pips at one point of tie. If the US Dollar Index (DXU11) closes below 74.70 on weekly basis, long-term weakness would be reinitiated.
Key equity index, Dow Jones Industrials (DJIA) finds support again in the ranges of 11900 to gain smartly beyond 12200 mark to currently trade at 12400 ranges; weekly close above 12450 ranges would reinitiate long-term rally in DJIA. Historic correlation between DJIA Vs DX suggests the major trend is still bearish in the Dollar Index.
NYMEX August Crude finds important support in the ranges of $90.00 ranges to currently trade firm at $94.60, weekly close above $96.40 would post long-term bottom.

FX Pair           Support 2           Support 1         Resistance 1         Resistance 2

EURUSD           1.4000                   1.4440                1.4560                1.4700
USDJPY             80.00                     80.50                  81.20                 81.50
GBPUSD           1.5970                   1.6000                1.6120                1.6200
USDCHF           0.8300                   0.8350                0.8500                0.8555
EURJPY            116.00                   116.50                117.40               118.00
AUDUSD           1.0590                   1.0630                1.0770               1.0835

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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.