12th July, 2011 – Daily Forex Report by GFM Research

The US Dollar Index appreciated for fourth consecutive day on the event of on the event of profit taking in the key equity index of the Dow Jones Industrials (DJIA). The USD has appreciated homogeneously against all the FX majors. Further strengthening of the Dollar Index is expected on weekly close above 76.70.
Key equity index, Dow Jones Industrials (DJIA) is expected to find in the zone of 12700-12800 which is historical congestion zone; consistently trading above 12400 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.
NYMEX August Crude though crossed important resistance of $95.60, could not trade above $100 which lead to sell off below $95.00 to currently trade at $94.36, weekly close below $92.20 would trigger sell of towards $88.00 ranges.

FX Pair       Support 2      Support 1         Resistance 1         Resistance 2

EURUSD       1.3850              1.3900               1.4030                    1.4114
USDJPY         79.00                79.50                 80.50                     81.00
GBPUSD       1.5770              1.5810               1.5950                    1.6000
USDCHF       0.8250              0.8300               0.8440                    0.8520
EURJPY        108.80              109.90               112.50                    113.30
AUDUSD      1.0440               1.0540               1.0660                    1.0690

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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.