21st March, 2012 – Daily Forex Report by GFM Research

The Dollar Index fall for second consecutive day after entering historic congestion zone of 80.50-81.20. Unusual correlation is observed between the benchmark equity index of the Dow Jones Industrials and the Dollar Index during the past couple of trading sessions, wherein the Dollar has depreciated despite the DJIA trading weak, though the major trend of DJIA is still intact till it holds above 12750 ranges. 
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 $106.90 ranges. Historic congestion is seen at $110.00 ranges and support is seen at $104.20 ranges. The trading range is narrowing between $105 and $110.

FX Pair           Trend              Resistance 2       Resistance 1      Support 1      Support 2

EURUSD    Sideways-Up             1.3470                  1.3326             1.3246            1.3170
USDJPY    Sideways-Up               84.30                    83.80               83.50             83.00
GBPUSD     Sideways                 1.5960                  1.5910             1.5795            1.5750
USDCHF   Sideways-Down          0.9200                  0.9140             0.9080            0.9000
EURJPY    Sideways-Up              112.10                  111.70             110.00            109.50
AUDUSD    Sideways                   1.0560                  1.0524             1.0400            1.0380

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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.