10 May 2012, Daily forex report – GFM Research Private Limited

The US Dollar has traded mixed bag wherein it has strengthened against the Common Currency and the Aussie while trading flat against the Cable and the Japanese Yen. The Dollar Index is trading range bound between 80.65 and 78.60, either side breakout would establish trend. The benchmark equity index of Dow Jones Industrials (.DJIA) is currently trading around critical support of 12700-12750 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 historic support zone of $95 ranges is currently trading at $96.80 ranges. Historic support is seen at $94-$95, further fall is expected only below $94.00.


FX Pair           Trend               Resistance 2    Resistance 1    Support 1    Support 2


EURUSD    Sideways-Down             1.3020             1.3000              1.2880         1.2825
USDJPY    Sideways-Up                    80.20               80.00               79.50           79.00
GBPUSD    Sideways-Up                  1.6200             1.6160             1.6110          1.6060
USDCHF    Sideways-Up                  0.9380             0.9300              0.9250         0.9210
EURJPY    Sideways                       104.45             104.00              103.00         102.60
AUDUSD   Sideways-Down              1.0200             1.0145              1.0070         1.0010


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