31st October, 2011 – Daily Forex Report by GFM Research

The US Dollar Index is entering historic congestion zone of 74.50-73.40 ranges; short covering may be witnessed in the USD against most of the FX majors. Only on consistent close below 73.00, would reinitiate long-term USD bearishness.
The benchmark equity index of the Dow Jones Industrials is trading near to major resistance zone of 12300-12400; profit taking may be witnessed in near term. Historic correlation between DJIA and DX is suggesting Greenback weakness though it may trade sideways for some time.
In NYMEX December Crude has hit short-term target of $95.00. Historic congestion is seen in the ranges of 95.00; wherein profit taking may be witnessed.

FX Pair            Support 2            Support 1           Resistance 1             Resistance 2

EURUSD              1.3880                  1.3930                  1.4080                       1.4120
USDJPY                77.10                    78.00                    80.20                        81.10
GBPUSD              1.5880                  1.5960                  1.6040                       1.6120
USDCHF              0.8470                  0.8520                  0.8740                       0.8820
EURJPY               107.00                  108.60                  111.70                       112.80
AUDUSD              1.0400                  1.0500                  1.0720                       1.0760

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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.