30th September, 2011 – Daily Forex Report by GFM Research

On the event of sideways trading (with weaker bias) witnessed in most of the asset classes, the Dollar Index appreciated from 77.30 ranges with stronger bias, though it is expected to  find stiff resistance in the ranges of 78.85-79.00 ranges due to bargain buying in most of the asset classes especially the equities though the major trend is still bearish. As long as 79.50 ranges are not given away, it is expected to correct to 77.00 and next 76.00 ranges.
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 that 76.00 ranges would act as very important support.
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 $77.00 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            1.3280                  1.3330                 1.3700                    1.3730
USDJPY                –                         75.94                  76.56                      77.00
GBPUSD            1.5380                  1.5450                 1.5730                    1.5770
USDCHF            0.8770                  0.8800                 0.9070                    0.9260
EURJPY            101.70                   102.80                 104.80                    105.50
AUDUSD           0.9540                   0.9660                 0.9810                    0.9880

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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.