6th July, 2011 – Daily Forex Report by GFM Research

The US Dollar traded mixed wherein mild correction was seen in the Euro and the Aussie Dollar; though it has traded strong against the Cable, the gains faded by the end of New York close; where as the US Dollar traded weak against the Swiss Franc.

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 12612 ranges which is an intermediate resistance in the immediate resistance zone of 12550-12650; 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 Franc.

NYMEX August Crude closes firm above important resistance of $95.80 to currently trade at $97.71, consistently trading above $94.50 would post long-term bottom.

FX Pair      Support 2       Support 1        Resistance 1       Resistance 2

EURUSD      1.4370            1.4400               1.4500               1.4550
USDJPY         80.00              80.50                 81.20                 81.50
GBPUSD       1.5870            1.5990               1.6100               1.6150
USDCHF        0.8300            0.8345               0.8440               0.8520
EURJPY         115.80            116.15               117.25               118.00
AUDUSD        1.0610           1.0650               1.0770               1.0835

GFM Research Private Limited

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