19th October, 2011 – Daily Forex Report by GFM Research

The Dollar Index continued to appreciate throughout the European session but profit booking was witnessed during the American session on the event of the benchmark equity index of the Dow Jones recovering off the gap down opening to close firm above 11500 ranges. 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) is expected to trade range bound between 11600 to 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.
In NYMEX November Crude found support at $85.50 ranges and closed beyond $88.20; it is expected to become range bound between $87.00 and $90.00, consistent close above $90.00 would establish fresh rally.

FX Pair            Support 2         Support 1         Resistance 1             Resistance 2

EURUSD             1.3600                 1.3700                1.3875                     1.3980
USDJPY                  –                       76.00                  77.40                      78.00
GBPUSD             1.5620                 1.5660                1.5760                     1.5830
USDCHF             0.8780                 0.8860                0.9020                     0.9065
EURJPY              103.90                 105.00                106.45                     108.00
AUDUSD             1.0145                 1.0210                1.0340                     1.0400

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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.