The Dollar Index falls again from 81.20 ranges from where it has sold off during September. Currently it is trading at 80.30 with 79.90-80.00 acting as important support. Daily close below 79.80 would result in further depreciation of the US dollar against the FX majors.
The benchmark equity index (DJIA) is trading at 12950 after finding support at the medium-term support of 12450-12500 ranges. Only a daily close below 12400 would put major trend at jeopardy else as the index consistently trades beyond 13300, major rally reinitiates.
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.Disclaimer: This report contains the views of GFM Research Private Limited. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research Private Limited nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.