FX Daily Report: Caution Spent On USD Longs - March 21, 2013
GFM Research | Mar 21, 2013 01:46AM ET
The Dollar Index (DX) is approaching first medium term resistance of 83.40 ranges to currently trade at 83.00 ranges. Alhough the short term trend is intact, with DX looking stretched, caution is spent on USD longs.
Unable to close below 81.90, the USD Dollar Index (DX) seems to reinitiate its bull trend with 83.40 and 84.20 acting as formidable resistances. Dow Industrials (DJIA) is trading consistently beyond all time 2007 historic high of 14200- 14300, indicating a new rally is under progress. Only a monthly close below 13700 would force us to rethink.
Historic correlation between DX Vs DJIA suggests the long-term trend is still dollar bearish, until the Dollar Index doesn't close above 84.50 on monthly basis. Short and medium term trends are bullish.
Disclaimer: This report contains the views of GFM Research Private Limited. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research Private Limited nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.