5th July, 2011 – Daily Forex Report by GFM Research

The Dollar Index (DXU11) traded flat also trading was sluggish yesterday evening on the event of U.S Independence Day.

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 12577 ranges which is an intermediate resistance; consistently trading above 12450 reinitiate long-term rally in DJIA. Historic correlation between DJIA Vs DX suggests the major trend is still bearish in the Dollar Index though short covering can be expected, especially against the Swiss France

NYMEX August Crude finds important support in the ranges of $90.00 ranges to currently trade firm at $94.85, weekly close above $96.40 would post long-term bottom.

FX Pair         Support 2           Support 1             Resistance 1         Resistance 2

EURUSD            1.4380                1.4400                    1.4500                    1.4550
USDJPY              80.00                  80.50                      81.20                      81.50
GBPUSD            1.5870                1.5980                    1.6050                    1.6085
USDCHF            0.8400                 0.8435                    0.8520                    0.8555
EURJPY             116.80                117.00                    118.00                    118.50
AUDUSD            1.0610                1.0640                    1.0700                    1.0735

GFM Research Private Limited

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.