5th October, 2011 – Daily Forex Report by GFM Research

The Dollar Index succumbed to profit booking after hitting resistance zone of 79.50; 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 range which is a very important support zone; trading consistently below 10600 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 testing support of $75.50 posted smart recovery to trade currently at $78.00; daily close above $80.20 would post short-term bottom whereas trading below $74.80 would pitch further sell off to $73.55.

FX Pair        Support 2        Support 1        Resistance 1            Resistance 2

EURUSD         1.3140               1.3220                 1.3380                   1.3485
USDJPY             –                      76.00                   77.40                    78.00
GBPUSD         1.5280               1.5380                 1.5500                   1.5525
USDCHF         0.9050               0.9100                 0.9260                   0.9330
EURJPY          100.70               101.10                 102.80                   104.20
AUDUSD         0.9340               0.9380                 0.9620                   0.9650

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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.