FX Daily Report : February 10, 2014
GFM Research | Feb 10, 2014 03:52AM ET
Market Commentary
The Euro is trading firm after finding support at 1.3500 ranges, enabling the Dollar Index (DX) to again find resistance at the short term resistance of 81.50 ranges with 80.20 ranges acting as intermediate support; the short term trend is still range bound between 80.20 and 81.50. Only daily close above 81.60 would post medium term bottom in DX reinitiating the medium term range of 84.50 and 78.80.
Historic inverse correlation between DX and Dow Jones Industrial Average (DJIA) is not witnessed since past couple of weeks wherein the key benchmark equity index of the Dow Industrials (DJIA) is making record sessions on the lower side despite stable USD; intermittent support is seen at 15315-15380 ranges in case of DJIA. Historic correlation between DX Vs DJIA suggests Dollar weakness till DX is not closing above 84.50 ranges on weekly basis though the historic correlation between DX Vs DJIA is getting less significant.
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