The Dollar is like the energizer bunny as it continues to bounce back toward its highs even in the faceof countervailing data flows. The Dollar has remained in favor this morning despite an improvement in views toward the Pound. However, a contraction in German August PPI readings overnight, a lack of interest in the Eurozone LTRO program and residual support from the FOMC Press conference leaves the Dollar in vogue. The tradewill likely take some direction from US leading indicators which are expected to show a modest rise later thismorning. However, the gain in leaders might be half the gain posted last month and therefore scheduled datamight not be justification for a straight away run into new highs for the Greenback. However, the trend in theDollar remains up because there is no definitive competition to take away the leadership mantle.
Technical Outlook: The market made a new contract high on the rally. Stochastics turning bearish atoverbought levels will tend to support lower prices if support levels are broken. The close above the 9-day movingaverage is a positive short-term indicator for trend. The daily closing price reversal down puts the market on thedefensive. It is a slightly negative indicator that the close was lower than the pivot swing number. The nextdownside objective is now at 83.97. The 9-day RSI over 70 indicates the market is approaching overboughtlevels. The next area of resistance is around 84.68 and 85.06, while 1st support hits today at 84.13 and belowthere at 83.97.