While the Dollar is showing some minimal recovery action this morning the action appears to be mostlytechnical in nature. One might also suggest that macro-economic information from the US hasn’t been strongenough to shut off the slide in the Dollar this week. However, Dollar shorts might be a little nervous ahead ofscheduled dialogue from the US Fed head later today. The Dollar probably sees some support from a downtick inGerman March manufacturing orders overnight and seeing Chinese services data barely hold above theexpansion/contraction line probably provides the Dollar with some support. While there is weekly US mortgageapplications data, Productivity and Consumer Credit to be released from the US today, the focus of the tradeshould be locked onto Yellen’s economic outlook to a joint session of Congress around mid-morning. We fearmore declines in the Dollar into and perhaps through the Thursday morning US claims results.
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.