The Dollar has held its ground in a tight trading range so far this week, and in spite of modest lossesremains close to new high ground this morning. While there have been few fresh developments for the market todigest, safe haven concerns are helping to keep the Dollar fairly well supported at these lofty price levels. US datawill start to take a more important role today with the Case-Shiller Home Price Index and a private survey ofConsumer Confidence, but the positive outlook for GDP and Unemployment data later this week has beenanother source of residual support for the Dollar. The FOMC meeting starts this morning and there is some roomfor disappointment given the mixed tone of recent US data results. At this point, it would not take much in the wayof elevated risk concerns out of Ukraine and/or Gaza combined with decent results with US numbers this morningfor the Dollar to reach new high ground. Near-term support is found at the 80.97 level, but traders may wait untilthe FOMC meeting results are out of the way before approaching the long side of the Dollar this close to new highground.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to supportreversal action if it occurs. The market’s close above the 9-day moving average suggests the short-term trendremains positive. It is a mildly bullish indicator that the market closed over the pivot swing number. The nextupside target is 81.20. The market is becoming somewhat overbought now that the RSI is over 70. The next areaof resistance is around 81.16 and 81.20, while 1st support hits today at 81.07 and below there at 81.02.