A bumpy overnight session has provided little relief for the Dollar, which is still finding modest pressurecoming into this morning’s trading. Yesterday’s series of Fed speakers may have thrown out some pro-taperingrhetoric, but only Fed President Bullard’s comments that a “small taper” may be merited to recognize recent jobgains would suggest that a December move may be in the cards. Mostly in-line data out of China and mixedresults out of Europe this morning has provided little lasting support as well, leaving the Dollar still looking up atseveral sessions’ worth of chart damage this morning. With no “top-tier” US data until Thursday, the Dollar is inneed of a fresh catalyst to fully regain upside momentum but an overnight recovery from the 80.00 level mayindicate a near-term low has been put in. The Dollar may climb up towards the 80.23 area later this morning, butclearly needs to see more evidence that a December or January Fed tapering move is on the way beforeregaining a sizable portion of recent losses.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tendto support reversal action if it occurs. The market’s close below the 9-day moving average is an indication theshort-term trend remains negative. It is a slightly negative indicator that the close was under the swing pivot. Thenext downside target is 79.99. The next area of resistance is around 80.26 and 80.40, while 1st support hits todayat 80.06 and below there at 79.99.