FX Daily Report: April 17, 2013
GFM Research | Apr 17, 2013 02:02AM ET
The Dollar Index (DX) is trading near the short term support of 81.80 with weaker bias; daily close below 81.80 would result in further Dollar bearish sentiment, taking the DX further south towards 80.80 ranges. Amidst stronger benchmark equity index of the Dow Jones Industrials (DJIA); the Euro, the GBP and CHF continued to appreciate against the Greenback, whereas the Japanese Yyen showed mild weakness. The Aussie is trading stable after the deep sell off witnessed on Monday.
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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