FX Daily: Long-Term Trend Still Dollar bearish - March 22, 2013
GFM Research | Mar 24, 2013 03:38AM ET
The Dollar Index (DX) is approaching first medium term resistance of 83.40 ranges. It is trading tight at 83.00 ranges, until it hangs on above 81.90. DX is poised to test initially 83.40 and eventually 84.20 ranges though the momentum may decrease.
Dow Industrials (DJIA) is trading consistently beyond all time high of 14200-14300, the historic high made during October 2007. This indicates a new rally is under progress, but the momentum ran out of gas at 14400 ranges. Only a monthly close below 13700 would force us to rethink the bull trend.
The 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 a monthly basis, even though short and medium term trends are bullish.
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