The Dollar has remained in favor overnight and that might be partially the result of favorable US datareleased yesterday and it might also be the result of technical reversal action on the Dollar chart. Some what surprisingly, the Dollar wasn’t deterred from its upward track in the wake of news that German exports rose at thefastest pace in 24 months. Another issue that might be providing the Dollar with some lift was a partiallydiscouraging UK retail sales reading for February. Recently the UK economy and the Pound have been the goldstandard for recovery currencies and with the shift in US data of late, it would appear that a fundamental shift hastaken place and the Dollar is poised for a climb back above the 80.00 level directly ahead. The US economicreport slate today is active but with 3rd and 4th tier private surveys and a wholesale trade inventory release. Whilethe data today might be less significant than the recent US Non-Farm Payroll report, the Dollar bulls are on thehunt for anything even slightly positive from the US.
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. The market has aslightly positive tilt with the close over the swing pivot. The next downside objective is now at 79.55. The next areaof resistance is around 79.83 and 79.93, while 1st support hits today at 79.65 and below there at 79.55.