Market Commentary
The Dollar Index (DX) closed flat after testing interim resistance zone of 80.70-80.75 ranges. DX is finding support at the medium term support of 79.00 ranges with 80.75 ranges acting as intermediate resistance; Dollar weakness may extend only on daily close below 78.70 ranges else breakout above 80.80 would retest the medium term resistance of 81.60/ 81.70 ranges.
The Common currency finds support at important support of 1.3700 ranges; the medium term trend is still sideways with 1.3680 ranges acting as support and 1.3840 ranges acting as supply zone.
The benchmark equity index of Dow Jones Industrial Average (DJIA) slips again from the major resistance zone of 16500-16600 ranges to currently trade weak at 16370 ranges; 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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