Market Commentary
The Dollar Index (DX) is finding support again at the short term support of 79.70 ranges on the event of the DX heavy weight Euro finding resistance at the historic resistance of 1.3820 ranges. The Euro is trading near the historic resistance of 1.3820 ranges; only daily close above 1.3850 ranges would result in the Euro reinitiating bull trend against the USD, with the EURUSD appreciating to 1.4250 ranges else it may head for correction below 1.3650 ranges. The Dollar Index (DX) is still trending sideways in the medium term with 78.70 acting as important support and 82.20 ranges acting as major resistance.
The benchmark equity index of Dow Jones Industrial Average (DJIA) is trading near important resistance zone of 16260-16420 ranges; further rally my reinitiate only above 16500. 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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