The Greenback depreciated against other FX majors

by Admin

Market Commentary

Dollar Index (DX) corrects after hitting first medium term resistance of 83.40 to currently trade at 82.90. Despite BoJ’s indirect intervention; the Greenback depreciated against other FX majors. The US Dollar Index (DX) may trade sideways with medium term to long term resistances are seen 83.40 and 84.20 though the trend is still intact till it manages to hang on above 81.80 ranges. Direct correlation.

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 1.3030 1.2980 1.2910 1.2880
Up 99.00 97.20 95.00 94.00
Sideways-Up 1.5320 1.5240 1.5170 1.5100
Sideways-Down 0.9530 0.9440 0.9380 0.9340
Up 127.30 126.00 122.60 122.00
Sideways 1.0510 1.0470 1.0380 1.0360