After clawing out a fresh new high for the move yesterday the Dollar has partially reversed course as ifit reached a near term technical and fundamental peak on the charts. With some expectations calling for a slightcontraction in US existing home sales figures later this morning, it is possible that the bullish edge in the Dollarhas run its course. However, talk that the German economy might see its growth pace moderate ahead,weakness in the Chinese currency and lingering Ukraine concerns are issues that should cushion the Dollaragainst noted downside action ahead. Initial support in the Dollar is seen at 79.86 and then again down at 79.76.We expect a dip through the US scheduled data window, but we also suspect that selling interest will wane ratherquickly and the Dollar might be set to win by default later today.
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.