The Dollar remains in vogue partly because economic readings have managed to come in slightlypositive. Holding back the Dollar is comments from the St. Louis Fed President that seemed to discount thehawkish rate comments from the head of the Fed last week. The Dollar might also be catching some buyinginterest from players anticipating a slight upward revision in US GDP figures later today. Holding back the Dollaris news that financial aid packages are starting to pile up for the Ukraine and that might be seen as a force limitingRussian expansion hopes. In addition to GDP data, the currency markets will also see initial claims that areexpected to rise again and that might be a development that arrests or reverses the early gains in the Dollar.Other data of note from the US today, is pending home sales, KC manufacturing and a Fed speech late in theday. We can’t argue against the Dollar winning by default and climbing back toward last week’s highs of 80.50over the coming two trading sessions.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. Themarket’s close below the 9-day moving average is an indication the short-term trend remains negative. Themarket’s close below the pivot swing number is a mildly negative setup. The next downside objective is now at79.10. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance isaround 79.61 and 79.84, while 1st support hits today at 79.25 and below there at 79.10.