The Dollar has slowly eroded on the charts and we doubt that the trade will come away from the FOMCmeeting minutes later today with a distinctly bullish track. Certainly the Dollar might see some fleeting buyinginterest from the Fed’s insistence on a continuation of its tapering process but that support might be largelycountervailed by the Fed mantra that the US economy needs low rates for an extended period of time to facilitaterecovery. In short, the US scheduled economic report slate is nearly empty of market moving data and that couldleave the market deriving its direction from slack retail sector earnings from Target. Given slack sales, revenuesand profits from the US retail sector one might expect to rack up another morning of disappointment on theeconomy, which in turn should leave the Dollar on a downward slope. However, limiting the downside in the Dollaris the lack of alternative attractions. Down today but prepare for a possible reversal off US claims on Thursday.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, sosome caution is warranted. The close above the 9-day moving average is a positive short-term indicator for trend.The market has a slightly positive tilt with the close over the swing pivot. The near-term upside objective is at80.21. The next area of resistance is around 80.14 and 80.21, while 1st support hits today at 80.04 and belowthere at 79.99.