The Dollar has seen little follow-through so far from Tuesday’s reversal as prices have held within atight overnight range in front of today’s key events. While recent US economic data has been a mixed bag, astronger than expected CPI number has provided much of the Dollar’s recent strength. With little in the way ofsafe haven support from the situations in Iraq and Greece, trading is likely to be subdued in front of today’s mainevent, the FOMC meeting results and post-meeting press conference. The improvement with recent US inflationreadings should be more than enough to keep the Fed’s tapering program on-track with another $10 billionreduction, but the market may be waiting more on updated Fed economic projections for further clarity on thepotential timing of US rate hikes. Fed Chairperson Yellen could create some turbulence with her post-meetingcomments, but it would need to be some surprising rhetoric on her part to drive the Dollar outside of its recentconsolidation zone. The Dollar looks to have some decent support around the 80.50 level, but would need to hearsome evidence of sooner-than expected US rate hikes to make a run at last week’s highs.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The market now above the 18-day moving average suggests the intermediate-term trend has turned up.The upside daily closing price reversal gives the market a bullish tilt. The market has a slightly positive tilt with theclose over the swing pivot. The next downside target is now at 80.40. The next area of resistance is around 80.85and 80.94, while 1st support hits today at 80.58 and below there at 80.40.