Market Commentary
The Dollar Index (DX) is still trading sideways between 81.40 and 79.20 in the medium term with intermediate support observed at 80.30; Dollar weakness may extend only on weekly close below 78.70. Most of the FX majors are trading in narrow range against the Greenback; critical support for the Euro is seen at 1.3570. The Cable is overbought with 1.7170 ranges acting as supply zone
The benchmark equity index of the Dow Industrials (.DJIA) is slowly scaling new highs with 17300-17400 being the eventual objective for breakout beyond 16500 ranges. Historic correlation between DJI and DX suggests major trend of the Dollar Index is still bearish till monthly close is not above 84.60 though the correlation between DJI and DX has become less significant during recent times.
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