The Dollar came away from the Fed testimony somewhat out of favor. With the Fed leaving theprospect of additional tapering in place, but also suggesting that tapering wasn’t predetermined, probably tooksome of the long interest out of the Greenback. However, a definitive improvement in global sentiment or a risk onvibe seems to have added to the downward tilt in the Dollar today, especially with signs that the US might bepoised to get out from under the debt ceiling threat without significant trouble. In another negative Dollardevelopment, somewhat positive Chinese economic data overnight and ongoing gains in many global equitymarkets has drained safe haven interest from the marketplace again overnight, In other words, the outlook for theglobal economy is improving and investors are looking for undervalued currencies with potential, instead ofseeking shelter from uncertainty. In order to arrest the slide in the Dollar, probably requires something positivefrom the US economic report slate and the economic report slate today is rather thin. Near term downsidetargeting is seen at 80.51 and then again down at 80.42.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lowerespecially if support levels are taken out. The market’s short-term trend is negative as the close remains belowthe 9-day moving average. The market’s close below the pivot swing number is a mildly negative setup. The nextdownside target is now at 80.43. The next area of resistance is around 80.81 and 80.89, while 1st support hitstoday at 80.59 and below there at 80.43.