27th January, 2012 – Daily Forex Report by GFM Research

After the US Dollar lost across the board on the event of no change in the interest rate, most of the appreciated as result, currently the Green back is trading sideways. 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 continued appreciating after taking based at 12300 ranges couple of weeks back to currently trade at 12700 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 trading range bound between $101 and $98.00. 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            1.2970                1.3035                    1.3180                    1.3200
USDJPY              76.20                  76.70                      77.30                     77.80
GBPUSD            1.5610                1.5640                    1.5700                    1.5750
USDCHF            0.9130                0.9170                    0.9260                    0.9300
EURJPY             100.20                100.80                    101.70                    102.50
AUDUSD            1.0440                1.0540                    1.0670                    1.0720

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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.