30th January, 2012 – Daily Forex Report by GFM Research

The Dollar Index is trading near to the support of 78.20; though the medium-term trend is bearish, DXH2 may trade sideways between 79.80 and 78.20. The long-term trend is still bearish till the Dollar Index does not close above 83.50 on monthly basis. Historic congestion is seen in the ranges of 81.40-83.50.
The benchmark equity Index of the Dow Jones Industrials has sold off after reaching last year highs of 12850-12900. 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. Correlation between CLH2 and DJIA is again positive after witnessing inverse correlation during past 4-5 trading sessions; 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          1.3090                 1.3125                   1.3200                      1.3250
USDJPY            75.70                   76.50                     76.90                       77.30
GBPUSD          1.5630                 1.5650                   1.5720                      1.5780
USDCHF          0.9060                  0.9130                   0.9220                     0.9300
EURJPY            99.40                  100.20                   101.30                     101.70
AUDUSD         1.0440                  1.0530                   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.