A noted failure on the Dollar charts overnight has shifted sentiment toward the Greenback. However,some traders will suggest that US data just hasn’t been strong enough to extend the recent bounce. Even morediscouraging to the Dollar bulls is the lack of additional upside action in the wake of noted weakness in a host ofcurrencies by the Australian Dollar, Indian rupee and the Yuan. In short, the Dollar trend of economic data flowjust hasn’t been strong enough to extend the mid April pulse higher. Perhaps the Dollar is partially undermined bystrength in UK CBI Industrial Output overnight. While we give the bear camp the edge in the Dollar today therereally isn’t a dominating theme in the currency. We do think the Dollar will garner some minor support from USresidential home sales figures later this morning. Pushed into the Dollar today we would look to sell an economicreport inspired bounce of 20-30 points.
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.