10th October 2011 – Daily Forex Report by GFM Research

Stronger equity bourses led to profit taking in the Greenback. After the Dollar Index hit resistance zone of 79.80, long liquidation was observed; 76.00 ranges is expected to again act important support. Historic resistance is seen in the ranges of 79.50 to 80.20 to 81.30.
Key equity index of Dow Jones has found support again in the ranges of 10500-10600 ranges and recovered more than 500 points to currently trade at 11200+ ranges. Historic correlation between DJIA Vs DX suggests short-term top being posted in the USD and short-term bottom being posted in the Dow.
NYMEX November Crude after testing support of $75.50 posted smart recovery to trade currently at $83.50; daily close above $80.20 suggests short-term bottom has been posted with immediate targets being $86.00 and $88.20.

FX Pair            Support 2            Support 1           Resistance 1                Resistance 2

EURUSD             1.3280                   1.3330                  1.3530                         1.3585
USDJPY                  –                         76.00                    77.40                          78.00
GBPUSD             1.5410                   1.5510                  1.5730                         1.5820
USDCHF             0.9000                   0.9100                  0.9260                         0.9330
EURJPY              102.10                   102.60                  103.70                         104.30
AUDUSD             0.9630                   0.9710                 0.9900                         0.9980

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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.