The Dollar Index (DX) is trading strong at 80.70 ranges resulting in most of the asset classes depreciating or forcing them to in narrow ranges at their respective resistances; next leg of Dollar weakness is expected only on DX consistently trading below 78.80 ranges else it is poised to test 81.00-81.20 ranges and then 81.80 ranges; the benchmark equity index of the Dow Industrials (DJIA) trading tight at 13975 around the psychological resistance of 14000 mark.
The benchmark equity index (.DJIA) after closing above the historic congestion of 13400-13500 gained consistently to currently trade at 13975 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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