Seeing the Dollar tracking slightly lower this morning in the wake of easing hints from the ECB,highlights a currency that is slipping back out of favor. In fact, the Dollar has tracked lower in the face ofsuggestions from the BOE that their economy is growing but that it is still too early to hike interest rates. In short,the Dollar could have been extended the recent rally off supportive external central bank revelations but insteadthe Dollar has dropped back. Therefore it would seem like the Dollar is anticipating slack data flows but with PPIthe main US release this morning, it is unlikely that the currency markets will see a big reaction to the USeconomic situation. A long term down trend channel resistance line is seen at 80.11 today and that trend line fallsdown to 80.09 on Thursday.
Technical Outlook: The cross over and close above the 60-day moving average indicates the longertermtrend has turned up. Momentum studies are trending higher but have entered overbought levels. Themarket’s close above the 9-day moving average suggests the short-term trend remains positive. The market has abullish tilt coming into today’s trade with the close above the 2nd swing resistance. The near-term upside target isat 80.51. The next area of resistance is around 80.37 and 80.51, while 1st support hits today at 80.02 and belowthere at 79.79.