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

The Dollar Index (DX) continued to appreciate after finding support at 73.60 ranges on August 29, 2011 on the event of softer equity bourses across the world. Double dip depression in the US is still glooming resulting in battering of most of the asset classes especially the equities.
Key equity index of the Dow Jones Industrials (DJIA) is expected to find support at 10700; whereas trading consistently below 10700 would result in further extension of fall towards 9700 ranges. Historic correlation between DJIA and DX suggests further strengthening on the Dollar though 78.75 ranges may act as major resistance.
NYMEX November Crude appreciated sharply off the day’s lows of $85.17 to close firm at $88.31; it seems to be heading towards $91.00 which happens to be immediate resistance.

FX Pair          Support 2            Support 1         Resistance 1             Resistance 2

EURUSD         1.3410                     1.3500                 1.3770                    1.3840
USDJPY           76.00                       76.30                   77.60                     78.20
GBPUSD         1.5740                     1.5770                 1.5890                    1.5920
USDCHF         0.8710                     0.8770                 0.8960                     0.9050
EURJPY             –                              –                      106.00                     107.20
AUDUSD        1.0020                     1.0220                 1.0380                     1.0470

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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.