The Dollar has found its footing again after the US Non-farm payroll results knocked the Greenback off balance at the end of last week. The Dollar probably found some positive traction off a weak Chinese services PMI result but the Dollar might see some minor headwinds from reports that Euro zone Producer prices managed the first positive monthly reading of the year overnight. With a rise in US initial claims last week and the slightlydisappointing US Non-farm payroll result, one might expect resistance in the Dollar around the 81.50 level to be alittle more significant directly ahead. In other words, to see the bulls extend the late July and early August rally inthe Dollar probably requires something fresh and positive from the US economic report front. The bulls win bydefault but once the September Dollar regains the 81.50 level it should encounter more significant resistance. TheCommitments of Traders Futures and Options report as of July 29th for US Dollar showed Non-Commercialtraders were net long 19,479 contracts, an increase of 802 contracts. The Commercial traders were net short26,078 contracts, an increase of 1,426 contracts. The Non-reportable traders were net long 6,599 contracts, anincrease of 624 contracts. Non-Commercial and Non-reportable combined traders held a net long position of26,078 contracts. This represents an increase of 1,426 contracts in the net long position held by these traders.
Technical Outlook: The daily stochastics gave a bearish indicator with a crossover down.Stochastics turning bearish at overbought levels will tend to support lower prices if support levels are broken. Themarket’s close above the 9-day moving average suggests the short-term trend remains positive. The swingindicator gave a moderately negative reading with the close below the 1st support number. The next downsidetarget is 81.08. The 9-day RSI over 70 indicates the market is approaching overbought levels. The next area ofresistance is around 81.58 and 81.77, while 1st support hits today at 81.24 and below there at 81.08.