While the Dollar managed another higher high for the move, overnight the market was unable to holdall of the initial gains today. Clearly the Dollar continues to benefit from ideas that the Euro is poised to fall further,as the talk in Asian overnight was centered on ECB easing intentions. However the Dollar might be underminedby renewed strength in the Pound and by stellar UK jobs results overnight. The US economic report slate today israther thin, with weekly mortgage application surveys and a Treasury Statement the key events of the session.While the bias is pointing upward in the Dollar, significant resistance sits just above at the 81.00 level.
Technical Outlook: The crossover up in the daily stochastics is a bullish signal. Daily stochasticshave risen into overbought territory which will tend to support reversal action if it occurs. The market’s close abovethe 9-day moving average suggests the short-term trend remains positive. It is a mildly bullish indicator that themarket closed over the pivot swing number. The near-term upside target is at 81.08. The next area of resistanceis around 80.98 and 81.08, while 1st support hits today at 80.67 and below there at 80.47.