Ongoing consolidation within a range bound by 98.00 and 98.72. Sagging Chinese economic expectationsand hints of more easing from the BOJ probably leaves the bear camp with a slight edge. However, significantconsolidation support down at 97.93 can probably hold up the market unless the US scheduled data flows latertoday come in definitively strong and then the chances of a downside breakout could increase.
Technical Outlook: The upside crossover (9 above 18) of the moving averages suggests adeveloping short-term uptrend. Rising stochastics at overbought levels warrant some caution for bulls. Themarket’s short-term trend is positive on the close above the 9-day moving average. It is a slightly negativeindicator that the close was under the swing pivot. The next upside target is 98.87. The next area of resistance isaround 98.53 and 98.87, while 1st support hits today at 97.95 and below there at 97.72.