The Dollar is slightly higher this morning in the wake of a generally positive reception to last Friday’spayroll results, lackluster Chinese commodity import data and perhaps because of positive economic newsflowing from Japan. With the ECB easing last week and hinting at the prospect of more assistance if it is needed,the Dollar has seemingly won by default at the start of the new trading week. The US scheduled report slate todayonly offers up an employment trends index that shouldn’t attract much interest especially since the report will bepreceded this morning by a speech from the Fed’s Bullard. The Commitments of Traders Futures and Optionsreport as of June 3rd for US Dollar showed Non-Commercial traders were net long 309 contracts, an increase of962 contracts which represents a change from a net short to net long position. The Commercial traders were netshort 6,561 contracts, an increase of 1,659 contracts. The Non-reportable traders were net long 6,252 contracts,an increase of 697 contracts. Non-Commercial and Non-reportable combined traders held a net long position of6,561 contracts. This represents an increase of 1,659 contracts in the net long position held by these traders.Decent support at 80.44 should hold and the bulls have an edge to start today.
Technical Outlook: Momentum studies trending lower from overbought levels is a bearish indicatorand would tend to reinforce lower price action. The close below the 9-day moving average is a negative shorttermindicator for trend. The upside daily closing price reversal gives the market a bullish tilt. It is a slightlynegative indicator that the close was lower than the pivot swing number. The next downside objective is now at80.14. The next area of resistance is around 80.59 and 80.71, while 1st support hits today at 80.30 and belowthere at 80.14.