Market Commentary
Most of the FX majors are traded flat especially the Common Currency and the Cable. 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. Though the Cable is still trading above the short term support of 1.6500 ranges, the bias is weak wherein it may appreciate only above 1.6720 ranges.
The benchmark equity index of Dow Jones Industrial Average (DJIA) is trading gained by more than 200 points after hitting psychological support of 16000 ranges with 16500-16550 ranges still posting resistance; 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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