FX Daily Report: May 21, 2013
GFM Research | May 21, 2013 02:47AM ET
The Dollar Index (DX) is correcting after hitting intermediate resistance of 84.50; with common currency, the Cable and the Aussie testing respective supports, pullback was observed leading to the Greenback depreciating across the board. The benchmark equity index of the Dow Jones Industrials Average (DJIA) continued to make new highs; it seems the correlation between DJIA Vs DX is getting lesser significant, wherein historic inverse correlation is not observed since last couple of weeks with both the indices appreciating.
The benchmark equity index of the Dow Jones Industrials Average (DJIA) continued appreciating to make new highs; the major trend is still intact until DJIA manages to trade above 14860 ranges.
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 88.40 on a monthly basis. The short and medium term trends are bullish until they manage to close above 83.40 ranges on a daily basis.
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