18th October, 2011 – Daily Forex Report by GFM Research

The Dollar Index ended its loosing streak after hitting major support zone of 76.00-76.50 resulting in correction in the benchmark equity index of DJIA. Though 76.00 ranges are expected to again act important support in medium term; historic resistance in the Dollar Index is seen in the ranges of 79.50 to 80.20 to 81.30.
Key equity index of Dow Jones Industrials (DJIA) after finding support at 10500 ranges rose to test major resistance zone of 11500-11600 and profit booking was witnessed wherein the Dow has lost more than 200 points yesterday. Historic correlation between DJIA Vs DX suggests short-term top being posted in the USD and short-term bottom being posted in the Dow.
In NYMEX November Crude sold off from $88.00 ranges which is immediate resistance zone, price may correct to $82.80 on daily close below $85.50

FX Pair         Support 2         Support 1            Resistance 1               Resistance 2

EURUSD           1.3600                 1.3700                1.3800                          1.3875
USDJPY               –                        76.00                  77.40                           78.00
GBPUSD           1.5650                 1.5690                1.5840                          1.5900
USDCHF           0.8780                 0.8860                0.9020                          0.9065
EURJPY            103.90                 105.00                106.55                          108.00
AUDUSD           0.9980                 1.0145                1.0270                          1.0340

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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.