27th September, 2011 – Daily Forex Report by GFM Research

Dollar Index after hitting major resistance zone of 78.75-79.30 ranges sold off to currently trade at 78.00 ranges. Dollar Index may correct to 77.00 ranges and later towards 76.20. Only weekly close below 76.20 results in reinitiating of multiyear Dollar weakness.
Key equity index of the Dow Jones Industrials (DJIA) has again found support at 10600-10700 ranges; DJIA is expected to find resistance at 11500-11600 ranges; only 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 to 78.75-79.30 ranges
NYMEX November Crude after facing resistance at $90.00-$90.50 since last week slipped below critical support of $84.50 resulting in sell off to $80.00 ranges; $75.50 may act as very important support with week’s median value at 79.50.

FX Pair             Support 2           Support 1          Resistance 1         Resistance 2

EURUSD               1.3410                 1.3470                 1.3600                 1.3650
USDJPY                    –                       75.94                   76.56                  77.00
GBPUSD               1.5420                 1.5490                 1.5630                  1.5720
USDCHF               0.8800                 0.8890                 0.9120                  0.9300
EURJPY                101.50                 102.20                 103.70                  104.30
AUDUSD               0.9650                 0.9700                 0.9940                  1.0050

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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.