7th July, 2011 – Daily Forex Report by GFM Research

The US Dollar traded mixed wherein mild correction was seen in the Euro and the Cable; where as the Aussie Dollar posted mild gains and the Swiss Franc traded flat
Key equity index, Dow Jones Industrials (DJIA) finds support again in the ranges of 11900 to gain smartly beyond 12200 to currently trade at 12665. Immediate resistance is seen in the zone of 12700-12800 which is historical congestion zone; 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 $97.24, consistently trading above $94.50 would post long-term bottom; $98.00-$98.50 is expected to act as immediate barrier though.

FX Pair       Support 2         Support 1          Resistance 1           Resistance 2

EURUSD        1.4160               1.4223                  1.4365                    1.4415
USDJPY          80.00                 80.50                    81.20                      82.10
GBPUSD        1.5870               1.5930                  1.6016                    1.6045
USDCHF        0.8300               0.8345                  0.8440                    0.8520
EURJPY         115.10               115.80                 116.60                    117.20
AUDUSD        1.0610               1.0650                 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.