The Dollar enters the trade this morning sitting significantly below the prior session high and seeminglyvulnerable from a technical perspective. With an extremely active US report slate today and the looming non farmpayroll report due out at the end of the week, the 80.115 level in the June Dollar Index might be an extremelycritical pivot point on the charts. One might have expected the Dollar to have regained some footing in the wakeof somewhat slack manufacturing data overnight but apparently the trade is waiting for US data to confirm the UShas a macro economic differential edge. Estimates for the US reports today generally call for minimalimprovement but the main focal point of the data flow today might be the high profile March Auto sales figures.Critical support is seen at 80.10 and then again at 80.00. In order for the Dollar to resume the upward track seenin the middle of March, probably requires something more than minor up ticks in US reports.
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.