Market Commentary
The Dollar Index (DX) approaching medium term support of 79.00 ranges, daily close below 78.80 would result in extension of medium term weakness. Now that EURUSD has broken above the critical resistance of 1.3800 ranges and is consistently trading above 1.3810 ranges, it may establish new trend till it does not close below 1.3730 ranges. Consistently trading above 1.3810 ranges would result in the Euro reinitiating bull trend against the USD with the EURUSD appreciating to 1.4250 ranges. The Cable tried to break out the critical resistance of 1.3700 ranges but sold off though the trend is intact till it manages to trade above 1.3500 ranges.
The benchmark equity index of Dow Jones Industrial Average (DJIA) is trading flat after testing the resistance of 16500-16550 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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