With the focus of the trade shifting back toward the prospects of deflationary conditions in the Eurozone and the trade seemingly embracing a slight improvement in a US services ISM result, one might suggestthat the Dollar starts the Thursday trade with a minimal fundamental edge. Few players expected the ECB to takeaction today, but the acknowledgement of a deflation concern should provide a minimal boost the Greenback,especially since the trade expects to see a decline in US claims later this morning. With the Fed’s Plosserovernight suggesting that a good case could be made to speed up tapering last night, the Dollar sees supportfrom yet another angle. Surprisingly the US economic bar continues to be set very low, as a slightly lower thanexpected private US jobs prediction earlier this week, was somehow spun into a positive Dollar event. Up trendchannel support in the March Dollar Index is seen today at 80.89 and that up trend line rises to 80.97 on Friday inthe face of a non farm payroll report that has a very wide range of forecasts.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a movehigher if resistance levels are penetrated. The market’s short-term trend is positive on the close above the 9-daymoving average. The daily closing price reversal down is a negative indicator for prices. It is a slightly negativeindicator that the close was under the swing pivot. The next upside target is 81.64. The next area of resistance isaround 81.41 and 81.64, while 1st support hits today at 80.90 and below there at 80.60.