14th July, 2011 – Daily Forex Report by GFM Research

The US Dollar tumbles after the trade deficit widens by more than $6B. The USD appreciated homogeneously against all the FX majors.
Key equity index, Dow Jones Industrials (DJIA) is expected to find resistance 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 $97.68, consistently trading above $94.00 would long-term bottom in CLQ11.

FX Pair       Support 2       Support 1         Resistance 1         Resistance 2

EURUSD       1.4050               1.4150                1.4330                 1.4380
USDJPY         78.00                 78.50                  79.60                  80.20
GBPUSD       1.6000               1.6050                1.6240                 1.6300
USDCHF          –                     0.8000                0.8160                 0.8250
EURJPY        111.00               111.60                113.40                 114.10
AUDUSD       1.0660               1.0690                1.0780                 1.0840

For trading calls, contact us at

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.