Despite fresh evidence of slowing from Germany and a downtick in Euro zone Consumer Confidence, the Dollar has remained weak overnight. Some might suggest that the Dollar is off balance because of ideas thatthe ECB is not set to act next week, while others suggest that evidence of wide spread hacking of large US bankshas downgraded sentiment toward the Greenback. It is also possible that the Dollar is under a bit of pressurebecause of recent slack data points and also because of expectations for some slack US data later this morning.However, the Dollar has shown some recovery capacity as the US trade gets underway and that appears to bethe result of expanding news coverage on what some official sources are calling a fresh stealth invasion of theUkraine by Russia. Since the Dollar might have factored in slack data already, a decline in claims and or asurprise rise in pending home sales might put the Dollar back in vogue, especially as the trade absorbs the slackEuro zone data points. Critical support and a pivot point in September Dollar Index is 82.50 and the firstresistance zone is seen up at 82.60.
Technical Outlook: The market made a new contract high on the rally. A bearish signal was triggeredon a crossover down in the daily stochastics. Stochastics turning bearish at overbought levels will tend to supportlower prices if support levels are broken. The market’s short-term trend is positive on the close above the 9-daymoving average. The market could take on a defensive posture with the daily closing price reversal down. Theswing indicator gave a moderately negative reading with the close below the 1st support number. The nextdownside objective is now at 82.21. The market is becoming somewhat overbought now that the RSI is over 70.The next area of resistance is around 82.64 and 82.86, while 1st support hits today at 82.32 and below there at82.21.