The Dollar is generally in favor this morning as US data this week has been less discouraging thandata seen elsewhere. The Dollar might have seen some support off news that liquidity issues have remained inplace in China but the Dollar is probably drafting some additional lift off ideas that Industrial Production data laterthis morning will show an economy moving toward recovery. Limiting the Dollar early today is fairly decent UKRetail sales results and an economic upgrade on the Japanese economy from the BOJ. However, the Japanesealso made it clear that more easing was “inevitable” and that probably leaves the Dollar with a positive tilt fromdevelopments in Asia overnight. As suggested already, the Dollar is probably poised to garner some lift fromIndustrial Production data later this morning, especially if that report manages a gain of +0.3% or more. Initialsupport is seen at 81.01 in the March Dollar Index and with the exception of the Pound, the Dollar looks to havean edge on most other actively traded currencies today. In fact, this week’s pattern of lower highs could bereversed by the action in the Dollar today.
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. It is a slightly negativeindicator that the close was under the swing pivot. The near-term upside objective is at 81.36. The next area ofresistance is around 81.18 and 81.36, while 1st support hits today at 80.85 and below there at 80.70.