DX suggests positive bias still prevailing for the US Dollar

by Admin

Market Commentary

The Dollar Index (DX) is trading near the medium term resistance of 83.40; the medium term trend range bound between 83.40 and 81.80 with negative bias; intraday support is observed at 82.75 ranges. Historic correlation between the bench mark equity index of Dow Jones Industrials (DJIA) and DX suggests positive bias still prevailing for the US Dollar.

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 14800 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 1.3110 1.3085 1.3000 1.2970
Sideways 101.40 99.70 98.70 98.00
Sideways-Up 1.5410 1.5350 1.5270 1.5230
Sideways-Up 0.9540 0.9500 0.9410 0.9380
Sideways-Up 132.00 130.60 128.90 127.80
Sideways-Up 1.0380 1.0330 1.0280 1.0210