The Dollar has found its footing after the severe post-US jobs data selloff, although it is showing littleinclination so far this morning for recovering any large portion of this week’s steep losses. A lack of top-tier USeconomic numbers has kept an in-line Non-Farm Payroll number front and center with the market as well as USrates at low levels, which have both helped to keep the Dollar on the defensive so far this week. While safe-havensupport has been a back-burner issue with events in the Black Sea region staying fairly subdued for the moment,the BOJ’s step back from fresh easing measures have seen those flows shift across the Pacific and into the Yen.This afternoon’s FOMC meeting minutes will play a key role in whether the Dollar can build on this morning’smodest strength, particularly with this winter’s cold US weather hopefully in the market’s rear-view mirror. TheDollar should find near-term support on a retest of Tuesday’s 79.80 low, but will need to avoid any dovish hintsfrom the FOMC meeting minutes to extend this recovery well above the 80.00 level.
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.