11th January, 2012 – Daily Forex Report by GFM Research

The Dollar Index traded sideways for most of the day; the US Dollar closed marginally strong against the Euro whereas closed flat against other majors. The medium trend is bullish till 80.00 ranges are holding on weekly closing basis, though 83.30 ranges would act as formidable resistance. Historic congestion is seen in the ranges of 81.40-83.50.
The benchmark equity index of the Dow Jones has managed to close above 12380 ranges making 12300 as the short-term support. Historic correlation between DX Vs DJIA is signifying USD bearishness in long-term, but if 83.50 is given away on monthly closing basis; long-term bottom would be posted in the USD.
NYMEX Feb Crude has succumbed to profit taking after making a high of 103.90 ranges during last week and is currently trading at 101.60 though the short-term trend is intact till it is trading above 99.00 ranges; it seems the bullish momentum is loosing at current ranges.

FX Pair     Support 2          Support 1           Resistance 1              Resistance 2

EURUSD        1.2680               1.2700                 1.2840                        1.2890
USDJPY          76.30                 76.60                   77.00                         77.50
GBPUSD        1.5360               1.5415                 1.5520                        1.5550
USDCHF        0.9260               0.9410                 0.9540                        0.9600
EURJPY           97.40                97.80                   98.70                         99.20
AUDUSD        1.0220              1.0270                  1.0360                       1.0410

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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.