It would appear that the Dollar has found some support on the charts around the 79.80 to 79.83 level. While the trade might expect some slightly supportive US data this morning and in Thursday morning’s trade,competition from positive numbers outside of the US is pretty high. In fact, with several private jobs reports dueout today and a speech from the US Fed Chairman during the trading session, traders should expect to see anincrease in volatility. We have to think that Yellen will generally tout the ongoing recovery track in the USeconomy but that she will also suggest that rates will remain low for a long time again and that should rob of theDollar of upside momentum. However, matching prior month’s data might not be enough to spark a sustainedrecovery move in the Dollar, especially given the improving economic mood abroad. Therefore unless ADP floatsa jobs number above +210,000 the Dollar might run into significant overhead resistance quickly.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may bedrying up soon. The market’s close below the 9-day moving average is an indication the short-term trend remainsnegative. The market’s close below the pivot swing number is a mildly negative setup. The next downside target isnow at 79.71. The market is approaching oversold levels on an RSI reading under 30. The next area of resistanceis around 79.89 and 79.95, while 1st support hits today at 79.78 and below there at 79.71.