13th June, 2011 – Daily Forex Report by GFM Research

The US Dollar traded strong for most of the day; though it has trade strong though the Asian and European trading sessions, profit booking was witnessed during the American trading session on the event of the smart recovery posted in the key equity index of the Dow Jones Industrials (DJIA) and other assets
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; only weekly close above 76.70 in  case of DXU11 would result in long term trend reversal in the US Dollar
NYMEX August Crude closed again above the key resistance of $95.70 to currently trade at $97.44, consistently trading above $94.00 would long-term bottom in CLQ11.

FX Pair        Support 2        Support 1         Resistance 1         Resistance 2

EURUSD        1.3850               1.3910               1.4060                    1.4124
USDJPY          78.50                 79.20                 80.00                     80.20
GBPUSD        1.5770               1.5862               1.5954                    1.6000
USDCHF        0.8250               0.8280               0.8360                    0.8440
EURJPY         108.80               109.90               112.40                    113.30
AUDUSD        1.0450               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.