8th July, 2011 – Daily Forex Report by GFM Research

Euro gains of the lows of 1.4225 ranges against the US Dollar; the USD traded mixed where in it has depreciated against the Euro and the Aussie Dollar whereas it has appreciated against the Cable, the Japanese Yen and the Swiss Franc
Key equity index, Dow Jones Industrials (DJIA) finds support again in the ranges of 11900 to gain smartly beyond 12200 to currently trade beyond 12600 ranges. 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; $99.00-$100.000 is expected to act as immediate barrier though.

FX Pair        Support 2         Support 1          Resistance 1             Resistance 2

EURUSD         1.4160                1.4223                1.4405                     1.4450
USDJPY           80.50                  81.00                  81.80                      82.10
GBPUSD         1.5870                1.5930                1.6016                     1.6045
USDCHF         0.8300                0.8380                0.8520                     0.8555
EURJPY          115.10                115.80               117.00                     118.00
AUDUSD         1.0680                1.0736               1.0818                     1.0840

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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.