Amidst the volatile session witnessed in the benchmark equity index of Dow Industrials (DJIA) the Dollar Index (DX) ended flat after swinging between 79.89 and 79.42 on Friday. The Dollar Index after finding support at 79.00 ranges is currently trade firm at 79.73; next leg of weakness in the USD is expected only on the DX closing below 79.00 on daily basis.
The benchmark equity index (DJIA) weak at 13093 with 13300-13400 ranges acting as the short-term resistance. Only a daily close below 12400 would put major trend in jeopardy else as the index consistently trades beyond 13300-13400, 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.