The Dollar Index has clearly forged a fresh upside extension overnight and it would seem like the Dollar is benefiting from an expanding macro-economic and interest rate differential. The current view is that theRussian trouble is set to be a drag on Europe and that the ECB will be forced to continue to apply stimulus tocountervail deflationary pressures. On the other hand, the US Dollar looks to face a very low economic growth barfor its scheduled data and therefore a modest gain in US existing home sales and +.2% to +.3% CPI results mightbe strong enough to pull in more investment toward the Dollar. With the ECB desiring a much softer Euro, thatleaves the Dollar with a dominating position. Given the news flow and the pace of US data relative to the EU theremight be little in the way of resistance in the September Dollar until the 81.00 level
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, sosome caution is warranted. The close above the 9-day moving average is a positive short-term indicator for trend.The upside daily closing price reversal gives the market a bullish tilt. It is a slightly negative indicator that theclose was lower than the pivot swing number. The next upside target is 80.77. The next area of resistance isaround 80.70 and 80.77, while 1st support hits today at 80.53 and below there at 80.43.