Apparently the outlook toward the US was improved by data released on Thursday. In other words, thecurrency markets currently have a relatively low bar for data released from the US, or perhaps expectations wereoverly negative and the slightly positive data yesterday was simply a relief. It is also possible the emerging marketconcerns are providing the Dollar with some fresh lift this morning as the upcoming G20 meeting is rekindlingpress coverage of that potential safe haven issue. The Dollar might also be garnering some lift from US TreasurySecretary suggestions that the EU needs to be doing more to stimulate their economy. The Dollar seemed tobenefit from disappointing UK retail sales results and the Greenback also came away with some lift off datareleased from Sweden overnight. While the Dollar sits just under yesterday’s highs, the Dollar can probablyexpect some weakening into the US existing home sales release, as that report is expected to come in soft. Solidsupport is seen at 80.31 but the talk of global stimulus packages from the G20, might take some of the positivetrack out of the Dollar into the close today.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. With the close higherthan the pivot swing number, the market is in a slightly bullish posture. The next downside target is now at 79.90.The next area of resistance is around 80.51 and 80.68, while 1st support hits today at 80.13 and below there at79.90.