Market Commentary
Dollar Index (DX) after finding resistance at the short term resistance of 81.50 ranges is heading towards the critical support of 79.80 ranges with 80.20 ranges acting as intermediate support. Only daily close above 81.60 would post medium term bottom in DX, else the medium term range of 84.50 and 78.80 is still intact.
Historic inverse correlation between DX and Dow Jones Industrial Average (DJIA) is not witnessed since past couple of days wherein the key benchmark equity index of the Dow Industrials (DJIA) entered correction phase despite weaker USD. 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 getting less significant..
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