The Dollar Index (DX) again finds support at 81.80 ranges

by Admin

Market Commentary

The Dollar Index (DX) again finds support at 81.80 ranges to currently trade at 82.70 ranges. Most of the FX majors depreciated against the US Dollar after the German court rejecting Cyprus bailout resulting in most of the asset classes either continuing down trend or selling off from higher ranges.

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.

Down 1.3100 1.3070 1.3000 1.2910
Sideways 98.50 98.00 96.80 96.00
Down 1.5320 1.5260 1.5120 1.5080
Down 0.9390 0.9370 0.9290 0.9260
Sideways-Down 129.00 128.40 126.00 124.80
Sideways 1.0370 1.0310 1.0200 1.0150