A fresh lower low for the move and the lowest exchange rate since December 31st highlights anentrenched downward pattern in the Dollar. Expectations are for more evidence of slack US data later thismorning and that means that the Dollar should continue to lose ground, especially as French and German growthfigures overnight have already shifted the macro economic differential even further against the Dollar. Anotherissue that is probably adding into the downside track in the Dollar is talk that the BOE might be the first centralbank to actually “raise” rates. Therefore the market might be pricing in weak US Industrial Production andconsumer sentiment figures that will be released later this morning. There might not be much in the way ofsupport on the charts until the 80.00 level on the charts.
Technical Outlook: A negative indicator was given with the downside crossover of the 9 and 18 barmoving average. Momentum studies are declining, but have fallen to oversold levels. The market’s close belowthe 9-day moving average is an indication the short-term trend remains negative. The close below the 2nd swingsupport number puts the market on the defensive. The next downside objective is 79.92. The next area ofresistance is around 80.59 and 80.92, while 1st support hits today at 80.09 and below there at 79.92.