The Dollar Index (DX) again finds resistance at 79.00 ranges since April, 2010, resulting in sell off in benchmark equity index of Dow Industrials (DJIA). Next leg of weakness in the USD is expected only on the DX closing below 78.80 on daily basis.
The benchmark equity index (.DJIA) after closing above the historic congestion of 13400-13500 gained consistently to currently trade at 13916 ranges with 14000 mark acting as psychological barrier and 14200 ranges being historic high.
Historic correlation between DX Vs DJIA suggests the long-term trend is still dollar bearish till the Dollar Index is not closing above 84.50 on monthly basis.
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