The bear camp in the Dollar has to be discouraged as a continued flow of softer than expected datahas not resulted in a decisive move below consolidation support of 80.00. Some traders suggest that notedweakness in the Chinese currency, lingering concerns toward the Ukraine and residual US Fed confidence towardthe US economy has provided a cushion to the Greenback over the last 48 hours of trade. However, the situationin the Ukraine is moving away from uncontrolled violence and toward organized financial turmoil, that in turn isbeing addressed by the IMF, EU, US and the Russian Federation. Therefore we suspect that the situation in theUkraine will fade into the back ground and the focus on US data might return in the wake of US residential homesales figures later today. Therefore traders should expect to see some downside action in the Dollar, but we don’texpect to see a sustained trade below the 80.00 level.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tendto support reversal action if it occurs. The close below the 9-day moving average is a negative short-termindicator for trend. It is a slightly negative indicator that the close was lower than the pivot swing number. The nextdownside target is now at 79.93. The next area of resistance is around 80.29 and 80.41, while 1st support hitstoday at 80.06 and below there at 79.93.