FX Daily Report: April 10, 2013
GFM Research | Apr 10, 2013 02:49AM ET
The Dollar Index (DX) continued to depreciate amidst stronger asset, especially the benchmark equity index of the Dow Industrials Average (DJIA). The DX is currently range bound between 83.40 and 82.20. Although the trend will stay intact until the DX manages to close on a daily basis above 82.20, momentum is decreasing. DX closing below 82.20 ranges would post a short term top.
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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