Despite potentially undermining Euro zone economic data overnight the Dollar has remained in anupward track on its charts. Apparently favorable US scheduled data from yesterday, lingering suspicion towardthe pace of the Euro zone recovery and weak Euro zone price news overnight has left the Dollar in vogue.Perhaps reports of Russian troop build ups along the Ukraine border has also rekindled concerns of more Eurozone slowing ahead in the event that Russian aggressions result in a blanket embargo of Russia. It is alsopossible that anticipation of slightly positive US scheduled data from factory orders later today might be lendingsome fresh support to the Greenback. Uptrend channel support in the September Dollar comes in today at 81.33but that support line rises to 81.53 by this coming Friday.
Technical Outlook: Daily stochastics turning lower from overbought levels is bearish and will tend toreinforce a downside break especially if near term support is penetrated. The close above the 9-day movingaverage is a positive short-term indicator for trend. It is a slightly negative indicator that the close was lower thanthe pivot swing number. The next downside objective is now at 81.31. The market is becoming somewhatoverbought now that the RSI is over 70. The next area of resistance is around 81.44 and 81.50, while 1st supporthits today at 81.35 and below there at 81.31.