Coupled with bottoming out of Interest rates in the US and tapering of bond buying by Fed may result in the Greenback appreciating. The Dollar Index (DX) again finds support at the medium term support of 79.00 ranges. Dollar weakness may extend only on daily close below 78.70 ranges. Though the Common Currency is trading above the critical support of 1.3800 ranges and is consistently trading above 1.3810 ranges, it may establish a new trend only above 1.3910 ranges. Though the Cable is still trading above the short term support of the 1.6500 ranges, the bias is weak where in it may appreciate only above 1.6720 ranges.
The benchmark equity index of the Dow Jones Industrial Average (DJIA) is trading by more than 200 points after hitting psychological support of 16000 ranges with 16500-16550 ranges still posting resistance. A further rally may reinitiate only on daily close above 16650. Historic correlation between DX Vs DJIA suggests dollar weakness till DX is not closing above 84.50 ranges on weekly basis though the historic correlation between DX Vs DJIA is have become less significant since past couple of years.
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