The Dollar looks to start the last trading session of the holiday shortened week on a weaker footing.Overnight economic news was mixed to slightly negative toward the Dollar, as Japanese economic data waspretty strong and that in turn dampens the perpetual fear of deflation in that nation. The Dollar might also seesome pressure from a decline in Euro zone jobless figures overnight but that news was mostly countervailed bynews of an S&P downgrade of the Netherlands. While the US economic report slate is empty today, the favorablekick off to the US holiday shopping season might have the same result as an active scheduled US report slate.Critical support in the Dollar Index is seen at 80.50 and that level might be expected to hold as long as USequities claw out more record high levels and private sources continue to tout year over year gains in holidaysales figures.
Technical Outlook
USD (DEC): The cross over and close above the 60-day moving average indicates thelonger-term trend has turned up. Momentum studies trending lower at mid-range should accelerate a move lowerif support levels are taken out. The market’s short-term trend is negative as the close remains below the 9-daymoving average. The upside daily closing price reversal gives the market a bullish tilt. The market has a slightlypositive tilt with the close over the swing pivot. The next downside target is 80.38. The next area of resistance isaround 80.88 and 81.00, while 1st support hits today at 80.58 and below there at 80.38.