7th October, 2011 – Daily Forex Report by GFM Research

The Dollar Index continued correction 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. On the lower side 76.00 ranges would act as formidable support in short-term.
Key equity index of again found support at 10500 ranges and posted smart recovery to currently trade beyond 11000 mark. Historic correlation between DJIA and DX suggests weakening of the US Dollar from current ranges to 76.00.
NYMEX November Crude is currently trading at $81.90, daily close above $82.50 would result in market testing $88.00 in coming weeks.

FX Pair          Support 2           Support 1            Resistance 1            Resistance 2

EURUSD            1.3250                 1.3350                  1.3500                       1.3540
USDJPY                 –                       76.00                   77.40                         78.00
GBPUSD            1.5330                 1.5460                  1.5600                       1.5720
USDCHF            0.9050                 0.9100                  0.9260                       0.9330
EURJPY             101.60                 102.30                  103.80                       105.00
AUDUSD            0.9540                 0.9680                  0.9820                       0.9930

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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.