The Dollar is showing some strength to start this morning in the wake of rumors that the US Fed mightreveal an earlier than expected rate hike timing. The Dollar is also benefiting from weak German ZEW economicexpectations for the month of July. Another issue lending support to the Dollar today is statements from the ECBthat further gains in the Euro will put the Euro zone recovery at risk. The press is suggesting that Yellen will starther remarks with upbeat comments on the US labor market and that could initially fan expectations of somethinghawkish from later testimony or from the question and answer session. Pushed into the market today, we have tofavor the bull case in the Dollar, with up-trend channel support and a pattern of higher lows giving the bull campan edge. Initial support is seen at 80.22 today and there might be little in the way of resistance seen until the80.40 level.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher priceaction. The cross over and close above the 18-day moving average is an indication the intermediate-term trendhas turned positive. The close over the pivot swing is a somewhat positive setup. The next upside target is 80.37.The next area of resistance is around 80.30 and 80.37, while 1st support hits today at 80.14 and below there at80.05.