While managing to put some near-term brakes on its recent pullback, the Dollar is showing few signs ofmaking any sort of extensive recovery coming into this morning’s trading. With no major surprises from a relativelyquiet night of overseas data, the Dollar remains focused mainly on the ebb and flow of Fed tapering prospects.Tuesday’s potential US budget deal may be short on substance, but does boost the chances that the Fed couldstart tapering in January. However, the Dollar is still in need of positive top-tier data results and Fed speakers tobolster the case for tapering, neither of which will be present during today’s trading. Overseas risk concerns maybe subdued at the moment, but may be the Dollar’s best hope of shaking off recent pressure. The Dollar mayslide back towards the 79.84 level later this morning, and may have to wait for US data later in the week in orderto lift decisively clear of these current price levels.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may bedrying up soon. The market’s short-term trend is negative as the close remains below the 9-day moving average.The market is in a bearish position with the close below the 2nd swing support number. The next downsideobjective is now at 79.66. The next area of resistance is around 80.13 and 80.30, while 1st support hits today at79.81 and below there at 79.66.