The US Dollar appreciated across the board wherein the Sterling continued to depreciate to currently trade at 1.5130 ranges followed by the Euro and next the Japanese Yen which is trading near its year lows against the Greenback. The Dollar Index (DX) is consistently trading above the critical resistance of 81.20 ranges and is poised to test 82.30 ranges with 81.70 acting as intermediate resistance.
Positive correlation was observed between the Dow Industrials (DJIA) and the Dollar Index (DX) on Friday wherein the Dow gained by more then 100 points despite the stronger USD. The benchmark equity index of the Dow Industrials (DJIA) is currently trading at 13998, and may trade sideways between 14000 and 13800; on breach of 13800 ranges, it is poised to retest historic congestion observed in the ranges of 13500-13600.
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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