21st October, 2011 – Daily Forex Report by GFM Research

The Dollar Index is trading in tight range between 77.50 and 76.50 as a result the benchmark equity index of the Dow Industrials traded flat. 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 with the Dollar Index range bound between 76.00 and 80.00
In NYMEX December Crude is expected to trade range bound between $84.00 and $90.00 for couple of days.

FX Pair        Support 2         Support 1           Resistance 1              Resistance 2

EURUSD           1.3580                1.3650                 1.3880                      1.3960
USDJPY                –                      76.00                   77.40                       78.00
GBPUSD           1.5620                1.5660                 1.5830                      1.5900
USDCHF           0.8610                0.8750                 0.8960                      0.9065
EURJPY            103.90                105.00                 106.45                      107.50
AUDUSD           1.0050                1.0145                 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.