FX Daily Report: April 23, 2013
GFM Research | Apr 23, 2013 02:29AM ET
The Dollar Index (DX) is trading in tight range in a dull session, as observed across asset classes. Medium term trend range is bound between 83.40 and 81.80 with positive bias; intraday support is observed at 82.60 ranges. Historic correlation between the bench mark equity index of Dow Jones Industrials (DJIA) and DX suggests positive bias still prevailing for the US Dollar.
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 14800 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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