Daily close below 81.80 would post short term top

by Admin

Market Commentary

The Dollar Index (DX) is finding resistance at 83.40 ranges with 81.80 ranges acting as important support; daily close below 81.80 would post short term top. Though the trend is intact till it manages to close on daily basis above 81.80, the momentum is decreasing, indicating appreciation in most of the asset classes especially the benchmark equity index of Dow Industrials (DJIA)

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.

Sideways-Up 1.3120 1.3090 1.3030 1.2960
Up 101.30 100.40 96.70 95.70
Sideways 1.5420 1.5380 1.5230 1.5190
Sideways-Down 0.9430 0.9380 0.9290 0.9230
Up 132.00 130.50 126.00 124.00
Sideways 1.0490 1.0440 1.0350 1.0320