20th October, 2011 – Daily Forex Report by GFM Research

The Dollar Index recovered off the European lows during the American trading session on the event of correction/continued fall witnessed in most of the asset classes. 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, though the major trend still remains range bound in the Dow between 11600-10500 ranges.
In NYMEX December 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            1.3560                   1.3600                 1.3770                         1.3875
USDJPY                 –                         76.00                   76.90                          77.40
GBPUSD            1.5620                   1.5660                 1.5750                         1.5850
USDCHF            0.8860                   0.8990                 0.9065                         0.9150
EURJPY             103.90                   105.00                 105.80                         106.45
AUDUSD            0.9953                   1.0145                 1.0230                         1.0340

For trading calls, contact us at

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.