FX Daily Report: April 05, 2013
GFM Research | Apr 07, 2013 02:17AM ET
The Dollar Index (DX) corrected after hitting first medium term resistance of 83.40 to trade at 82.90. Despite the 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, although the trend is still intact until 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. 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. Until the Dollar Index doesn't close above 84.50 on a monthly basis
although the short and medium term trends are bullish.
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