Once again the Dollar remains within striking distance of its recent highs and it is seemingly benefitingfrom ideas that the ECB will announce fresh easing moves later today. However, for the Dollar to continue to riseon its charts, might require some economic support as the expectation of ECB easing is about to run its course.The Dollar is somewhat off balance because of positive German Manufacturing orders and because of an uptickin Euro zone retail sales results overnight. Therefore the onus is on the bull camp in the Dollar to justify an upsideextension on the charts. Unfortunately the first move in the Dollar today might be to the downside in the wake ofan anticipated rise in US claims. While a 10,000 gain in claims doesn’t seem like a big deal, the failure to staybelow the 300,000 level again could rekindle ideas that the US labor situation remains anemic. Furthermore, wealso think the Dollar is facing a sell the fact reaction to the impending ECB decision, especially after seeing buyingof the rumor for most of the last two weeks. Pushed into the market we are a seller of the Dollar until data crossesup the trade again.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication. Risingstochastics at overbought levels warrant some caution for bulls. The market’s close above the 9-day movingaverage suggests the short-term trend remains positive. The market has a slightly positive tilt with the close overthe swing pivot. The near-term upside objective is at 80.86. The next area of resistance is around 80.81 and80.86, while 1st support hits today at 80.61 and below there at 80.46.