The Dollar is finding mild pressure at the start of the week, but remains in striking distance of new highground after last week’s robust performance. Outside of a lackluster Italian Business Confidence, there has beenlittle for the market to digest this morning leaving the Dollar’s safe-haven appeal front-and-center with the market.While US data has shown mixed results as of late, strong readings from the labor sector continue to provide asource of underlying support. Today’s US numbers could create some headwinds for the Dollar, however, withPending Home Sales potentially causing some pressure as recent US housing data has provided some slackresults as of late. Even so, the prospect of this week’s FOMC meeting and another decent Payrolls result shouldkeep the Dollar well supported this morning, although it may take fresh news out of the Ukraine and/or Gaza tobring a retest of the 81.20 high for the move. The Commitments of Traders Futures and Options report as of July22nd for US Dollar showed Non-Commercial traders were net long 18,677 contracts, an increase of 974contracts. The Commercial traders were net short 24,652 contracts, an increase of 593 contracts. TheNonreportable traders were net long 5,975 contracts, a decrease of 381 contracts. Non-Commercial andNonreportable combined traders held a net long position of 24,652 contracts. This represents an increase of 593contracts in the net long position held by these traders.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, sosome caution is warranted. A positive signal for trend short-term was given on a close over the 9-bar movingaverage. The market has a bullish tilt coming into today’s trade with the close above the 2nd swing resistance.The near-term upside objective is at 81.39. The market is becoming somewhat overbought now that the RSI isover 70. The next area of resistance is around 81.28 and 81.39, while 1st support hits today at 80.99 and belowthere at 80.80.