With a fresh new high for the move in the Dollar overnight it is clear that the Greenback has regainedthe macro economic and interest rate differential edge. While Euro zone retail sales were strong overnight, themarkets were a bit discouraged by a steady 12.1% Euro zone November unemployment result. With the FOMCmeeting minutes release later this afternoon, the trade seems to think that the US Fed is set to be more hawkishthan the ECB and that means the Dollar is probably set to continue to gain on the charts. Consumer Credit fromthe US later today is expected to downshift and that might result in some minor back and fill action in the Dollar,as it is odd that consumer credit would fall into the beginning of the US holiday shopping period. Another issuethat might be providing the Dollar with some lift is a series of predictions overnight of concern toward emergingmarkets in 2014. With a Fed member yesterday suggesting that the US economy still needs assistance andanother Fed member suggesting that the pattern of tapering is not set in stone yet, one might have expected therecent rise in the Dollar to have reversed, but for the time being, the trend in the Dollar is up. Near term upsidetargeting is seen at 81.34.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Themarket’s short-term trend is positive on the close above the 9-day moving average. With the close higher than thepivot swing number, the market is in a slightly bullish posture. The near-term upside objective is at 81.31. Thenext area of resistance is around 81.17 and 81.31, while 1st support hits today at 80.83 and below there at 80.62.