2nd March, 2012 – Daily Forex Report by GFM Research

The Dollar Index has found support at 78.10 ranges to currently trade at 78.90 ranges; the short term trend is sideways between 79.80 and 78.40. The benchmark equity index of the Dow Jones Industrials is currently trading sideways between 12880 and 13050 ranges, forcing the Greenback to trade sideways.
Historic correlation between DX Vs DJIA suggests the short-term and medium-term trend being sideways where as the long-term trend is still dollar bearish till the Dollar Index is not closing above 83.50 on monthly basis.
NYMEX Crude after hitting $110 is currently trading at $108.50 ranges. Historic congestion is seen at $110.00 ranges and support is at $104.20 ranges.

FX Pair          Trend             Resistance 2    Resistance 1    Support 1       Support 2

EURUSD      Sideways-up         1.3410             1.3365             1.3277              1.3255
USDJPY            Up                     82.00               81.50              81.00                 80.70
GBPUSD      Sideways-up         1.6070             1.5980             1.5910              1.5890
USDCHF        Sideways            0.9220             0.9080             0.9045              0.9020
EURJPY             Up                  108.80             108.45             107.90              107.50
AUDUSD        Sideways           1.0915             1.0830             1.0760              1.0748

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: 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.