The Dollar remains within close proximity to its recent highs and the charts would seem to project morenew highs for the move. While Germany showed a better than expected May seasonal adjusted joblessResults overnight, UK CBI May retail sales volume was a little soft. Surprisingly the market also saw a better thanexpected Euro zone sentiment results and that could have knocked the Dollar down in the early going today.However, the Dollar looks to be stuck near the upper end of the recent trading range and the trade might look toUS mortgage application surveys and US chain store sales for early direction today as there really isn’t a top tierUS data point due out until Thursday morning. We leave the bias pointing upward in the Dollar, with close-insupport seen at 80.40.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, sosome caution is warranted. A positive signal for trend short-term was given on a close over the 9-bar movingaverage. The daily closing price reversal down puts the market on the defensive. With the close higher than thepivot swing number, the market is in a slightly bullish posture. The near-term upside target is at 80.69. The marketis becoming somewhat overbought now that the RSI is over 70. The next area of resistance is around 80.57 and80.69, while 1st support hits today at 80.28 and below there at 80.11.