FX Daily Report: May 29, 2013
GFM Research | May 29, 2013 06:28AM ET
The Dollar Index (DX) appreciates to trade near the short-term resistance of 84.50; daily close above 84.50 ranges would result in DX appreciating further to 88.40 ranges. The benchmark equity index of the Dow Jones Industrials Average (DJIA) seems to be overstretched, although the major trend is still intact until the 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 with 84.50 ranges acting as intermediate resistance. Liquidity concerns coupled with an anticipated slowdown is putting pressure on most of the currencies, which results in dollar strength.
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