The Dollar Index (DX) continued to depreciate

by Admin

Market Commentary

Amidst stronger asset, especially the benchmark equity index of the Dow Industrials Average (DJIA), the Dollar Index (DX) continued to depreciate. The Dollar Index (DX) is currently range bound between 83.40 and 82.20; though the trend is still intact till DX manages to close on daily basis above 82.20, the momentum is decreasing. DX closing below 82.20 ranges would post short term top.

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 1.3155 1.3110 1.3030 1.2960
Up 101.30 100.40 97.30 96.70
Sideways 1.5420 1.5380 1.5230 1.5190
Sideways-Down 0.9380 0.9350 0.9290 0.9230
Up 132.00 130.50 127.30 126.00
Sideways 1.0570 1.0510 1.0450 1.0380