FX Daily Report: April 09, 2013
GFM Research | Apr 09, 2013 12:40AM ET
The Dollar Index (DX) is finding resistance at 83.40 ranges with 81.80 ranges acting as important support; daily close below 81.80 would post short term top. Although the trend will stay intact until it manages to close on daily basis above 81.80, the momentum is decreasing, indicating appreciation in most of the asset classes, especially the benchmark equity index of Dow Industrials (DJIA)
Dow Industrials (DJIA) is trading consistently beyond all time high of 14200-14300, a historic high made during October 2007. This indicates a new rally is under progress, but the momentum has run out of gas at 14400 ranges. Only a monthly close below 13700 would force us to rethink the bull trend.
The historic DX Vs DJIA correlation suggests the long-term trend is still Dollar bearish, but only while the Dollar Index doesn't close above 84.50 on a monthly basis. The short and medium term trends are bullish.
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