FX Daily Report: April 18, 2013
GFM Research | Apr 18, 2013 01:56AM ET
The Dollar Index (DX) again finds support at 81.80 ranges to trade at 82.70 ranges. Most of the FX majors depreciated against the U.S. Dollar after the German court rejected Cyprus bailout, resulting in most of the asset classes either continuing the dow trend or selling off from higher ranges.
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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