Choppy to lower global equity market action, slack Chinese economic data and residual hawkishsentiment toward the US economy looks to leave the Dollar with a slight upward bias today. Talk in the Presssuggests that the US Treasury Secretary is poised to lecture his German counterparts on the need to stimulatedomestic demand and that might foster some ill feelings between the US and German officials. However,expectations are calling for slightly improved US November Factory Orders and improved US December ISMNon-Manufacturing PMI readings and that should leave the Dollar with a minimal upward bias on its charts. Withthe Dollar rising above its 50 day moving average last week and prices this morning attempting to settle in abovethe 81.00 level, the bull camp has the edge to start this week. Another big underpin for the Dollar bulls is talk lastweek from the outgoing US Fed Chairman Bernanke, that the Fed is still committed to economic stimulus but thatthe historically high level of assistance to the recovery effort has to be adjusted. Critical support is seen earlytoday at 80.88 and a move above 81.06 could signal another wave higher thrust ahead.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Apositive signal for trend short-term was given on a close over the 9-bar moving average. The market setup issupportive for early gains with the close over the 1st swing resistance. The near-term upside target is at 81.35.The next area of resistance is around 81.22 and 81.35, while 1st support hits today at 80.80 and below there at80.51.