14 May 2012 – Daily Forex Perspective by GFM Research Private Limited

The US Dollar traded flat on the event of most of the asset classes, especially the benchmark equity index of the Dow Jones Industrials trading flat. 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 $95.70 ranges. Historic support is seen at $94-$95, further fall is expected only on daily closing below $94.00.

FX Pair           Trend          Resistance 2    Resistance 1    Support 1    Support 2

EURUSD    Sideways-Down         1.3000             1.2960            1.2880          1.2825
USDJPY     Sideways-Up               80.50              80.20              79.80            78.30
GBPUSD    Sideways                   1.6150            1.6110            1.6050          1.5985
USDCHF    Sideways-Up              0.9380             0.9330            0.9260          0.9210
EURJPY    Sideways                   105.50             104.50            102.80           101.80
AUDUSD   Sideways-Down          1.0120             1.0080            0.9980          0.9950

GFM Research Private Limited

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