The Dollar has garnered some lift from disappointing German Industrial output results overnight but that setback might be the result of a smaller reporting period. However, the Dollar is probably still garnering somelift from last week’s surprisingly strong US non-farm payroll reading as that news rekindles respect for theGreenback in the face of a measure of suspicion toward the pace of growth in the Euro zone. The Dollar mightalso be drafting some support from the anticipation of favorable corporate earnings flow ahead, were seeminglyupgraded in the wake of the better than expected US payroll results last week. Initial support in the Dollar movesup to 80.28 and then again down at 80.24. The Commitments of Traders Futures and Options report as of July 1stfor US Dollar showed Non-Commercial traders were net long 20,197 contracts, a decrease of 1,624 contracts.The Commercial traders were net short 26,265 contracts, a decrease of 1,235 contracts. The Non-reportabletraders were net long 6,069 contracts, an increase of 390 contracts. Non-Commercial and Non-reportablecombined traders held a net long position of 26,266 contracts. This represents a decrease of 1,234 contracts inthe net long position held by these traders.
Technical Outlook: The cross over and close above the 60-day moving average is an indication thelonger-term trend has turned positive. A bullish signal was given with an upside crossover of the daily stochastics.Rising from oversold levels, daily momentum studies would support higher prices, especially on a close aboveresistance. A positive signal for trend short-term was given on a close over the 9-bar moving average. Themarket’s close above the 2nd swing resistance number is a bullish indication. The next upside target is 80.90. Thenext area of resistance is around 80.58 and 80.90, while 1st support hits today at 79.96 and below there at 79.66.