27th October, 2011 – Daily Forex Report by GFM Research

The Dollar Index is trading in very important support zone of 75.30-76.00; weekly close below 75.00 would reinitiate long-term dollar bearishness. Though 76.00 ranges are expected to again act important support in short term; historic resistance in the Dollar Index is seen in the ranges of 79.50 to 80.20 to 81.30.
The benchmark equity index of the Dow Jones Industrials has closed above historic resistance of 11600 ranges to trade currently above 12000; consistent close above 12000 would resume long-term bullishness in DJIA. Historic correlation between DJIA and DX is suggesting Greenback weakness though it may trade sideways for some time.
In NYMEX December Crude is approaching the short-term target of $97.00. Historic congestion is seen in the ranges of 97.00-101.20.

FX Pair       Support 2         Support 1             Resistance 1            Resistance 2

EURUSD          1.3820              1.3880                   1.4080                     1.4130
USDJPY              –                     74.50                     76.20                      77.00
GBPUSD          1.5890              1.5940                   1.6060                     1.6120
USDCHF          0.8470              0.8700                   0.8885                     0.8910
EURJPY           103.90              104.70                   106.50                     107.20
AUDUSD          1.0360              1.0440                   1.0555                     1.0625

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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.