FX Daily Report: April 30, 2013
GFM Research | Apr 30, 2013 12:35AM ET
The Dollar Index (DX) is trading at 82.26 ranges, near the support of 81.80 of the medium term trend range bound between 83.40 and 81.80 formed over the last couple of months; bias is still negative. Historic correlation between the bench mark equity index of Dow Jones Industrials (DJIA) and DX suggests negative bias is 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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