25th January, 2012 – Daily Forex Report by GFM Research

With the Fed’s Interest Rate decision due today, the US Dollar is trading sideways against most of the FX majors. The medium trend is bullish till 79.60 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 Industrials has appreciated more than 200 points after taking based at 12300 ranges couple of weeks back to currently trade at 12690 ranges; last year highs of 12850-12900 ranges may act as supply zone again. Historic correlation between DX Vs DJIA is signifying USD bearishness in long-term, only if 83.50 is given away on monthly closing basis; long-term bottom would be posted in the USD.
NYMEX Feb Crude is again succumbed to sell off from $102 ranges to currently trade at $99.00. Rare inverse correlation between CLH2 and DJIA is observed during last week; the major trend is intact till it manages to close consistently above $89.00 ranges on weekly basis, though short-term trend is signaling mild weakness.

FX Pair            Support 2           Support 1           Resistance 1             Resistance 2

EURUSD              1.2870                   1.2950                  1.3060                    1.3130
USDJPY                77.40                     77.70                    78.20                     78.40
GBPUSD              1.5425                   1.5560                  1.5640                    1.5700
USDCHF              0.9220                   0.9260                  0.9320                    0.9370
EURJPY                99.80                   100.50                  101.70                    102.50
AUDUSD             1.0410                   1.0460                  1.0550                    1.0570

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.