The Dollar has started 2014 with a surprising jump up on the charts. In fact, after seeing discouragingDollar action in the wake of potentially supportive US data in the second half of December, the run up in the Dollartoday probably catches some players by surprise. However, some players think that positive data from the US willserve to rekindle January tapering talk, even though the Fed is generally being presented with deflationary pricesignals. Perhaps the Dollar is seeing some lift from soft Chinese PMI readings and perhaps the Dollar is catchingsome lift from the initial slide in European equities. The gains in the Dollar are a little suspect this morning in thewake of European PMI figures that showed continued consolidation of the recovery theme. The US will see aflurry of US economic data points this morning with claims expected to be mostly unchanged from the prior weekwhile Construction Spending from the US is expected to post a slight rise. All things considered, a gap higheropening combined with potentially supportive US data could leave the March dollar index poised for a return tooverhead consolidation highs up at 81.00. Initial support is seen down at 80.46 and 80.53.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a move lowerif support levels are taken out. The close below the 9-day moving average is a negative short-term indicator fortrend. The market has a slightly positive tilt with the close over the swing pivot. The next downside target is 80.00.The next area of resistance is around 80.42 and 80.52, while 1st support hits today at 80.17 and below there at80.00.