4th October, 2011 – Daily Forex Report by GFM Research

Continued weakness in the equities world over led to safe haven bet on the USD which resulted in the Dollar Index appreciating beyond 79.00+ ranges. Historic resistance zone is seen in the ranges of 79.20 to 80.20 to 81.30 ranges.
Key equity index of the Dow Jones Industrials (DJIA) is again trading at 10600-10700 ranges which is very important support zone; 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, below which further sell off to $73.55 is expected.

FX Pair           Support 2       Support 1        Resistance 1             Resistance 2

EURUSD             1.2950              1.3070               1.3283                    1.3360
USDJPY                 –                     76.00                 77.40                     78.00
GBPUSD             1.5280              1.5380               1.5530                    1.5580
USDCHF             0.9050              0.9090               0.9260                    0.9330
EURJPY                 –                   100.70                102.60                    103.20
AUDUSD            0.9340              0.9380                0.9620                    0.9690

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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.