The US Dollar Index is approaching critical support of 78.20, DXH2 may become sideways between 79.80 and 78.20. Though the major trend is bearish, 78.20 may act as important support.
Dow Jones Industrials is trading at the last year highs of 12900 ranges; DJIA Vs DX correlation suggests a word of caution though the major trend of the Greenback is bearish and the major trend of the Dow is bullish, both may trade sideways before resuming respective trends. Only consistent close above 13000 would reinitiate major rally in the Dow Industrials.
The long-term trend is still bearish till the Dollar Index does not close above 83.50 on monthly basis. Historic congestion is seen in the ranges of 81.40-83.50. Historic correlation between DX Vs DJIA is signifying USD bearishness in long-term, only if 83.50 is given away on monthly closing basis; long-term bottom would be posted in the USD.
NYMEX Feb Crude after finding support at $96.00 ranges is currently trading at $100.50. Correlation between CLH2 and DJIA has again turned negative again with crude trading firm. The major trend is intact till it manages to close consistently above $89.00 ranges on weekly basis; the short term trend is also bullish targeting $101.50 ranges.
FX Pair Trend Support 2 Support 1 Resistance 1 Resistance 2
EURUSD Sideways 1.3020 1.3120 1.3210 1.3235
USDJPY Sideways 77.30 77.60 78.10 78.30
GBPUSD Sideways 1.5630 1.5650 1.5800 1.5850
USDCHF Sideways-Down 0.9100 0.9130 0.9210 0.9340
EURJPY Sideways 101.00 101.60 102.50 103.00
AUDUSD Sideways-Up 1.0560 1.0640 1.0730 1.0750
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