With mixed messages from US data and Fed speakers making it difficult for the Dollar to find overalldirection this week, it has been positive vibes from overseas that has put prices under moderate pressure thismorning. While there have been two hook reversals during the past 3 sessions, yesterday’s failure to sustain abreakout above the July/November downtrend may bring additional technical pressure to close out the week.There have been several highlights since the Veterans Day holiday, but recent US economic data has not beenconsistently strong enough to support the case for a December Fed tapering move which in turn make it difficultfor the Dollar to regain upside momentum going into the weekend. With no top-tier US data for the market todigest today and with today’s Fed speakers not covering the US economy directly in their remarks, the Dollar mayneed a fresh boost of safe-have support in order to put the brakes on this current pullback. The Dollar may findnear-term support around the 80.74 level, but should avoid a further slide below this week’s lows due to residualsupport from the FOMC meeting minutes release from earlier this week.
Technical Outlook
USD (DEC): Momentum studies trending lower at mid-range could accelerate a price break ifsupport levels are broken. The market’s close above the 9-day moving average suggests the short-term trendremains positive. The market could take on a defensive posture with the daily closing price reversal down. Themarket tilt is slightly negative with the close under the pivot. The next downside objective is now at 80.77. Thenext area of resistance is around 81.19 and 81.43, while 1st support hits today at 80.86 and below there at 80.77.