Amidst stronger benchmark equity index of the Dow Jones Industrials (DJIA)

by Admin

Market Commentary

The Dollar Index (DX) is trading near the short term support of 81.80 with weaker bias; daily close below 81.80 would result in further Dollar bearish sentiment taking DX further south towards 80.80 ranges. Amidst stronger benchmark equity index of the Dow Jones Industrials (DJIA); the Euro, the GBP and the Swiss France continued to appreciate against the Greenback whereas the Japanese Yen showed mild weakness with the Aussie trading stable after the deep sell off witnessed on Monday.

Dow Industrials (DJIA) is trading consistently beyond all time high of 14200-14300, historic high made during October 2007 indicating new rally is under progress but the momentum has run out of gas at 14400 ranges; only monthly close below 13700 would force us to rethink the bull trend.

Historic correlation between DX Vs DJIA suggests the long-term trend is still Dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis though the short term and medium term trends are bullish.

Up 1.3284 1.3260 1.3140 1.3100
Sideways 98.90 98.35 96.80 96.00
Sideways-Up 1.5460 1.5425 1.5340 1.5300
Down 0.9280 0.9265 0.9190 0.9100
Up 132.00 130.70 127.20 126.00
Sideways 1.0480 1.0420 1.0300 1.0180