The Dollar remains within close proximity to its recent highs despite suspect US data results. However,the Dollar is catching a lift from negative economic views toward the German economy from the Ifo surveyovernight and from talk that the Chinese currency is poised to fall ahead because of fresh Chinese easingprospects. Other issues providing support to the Dollar this morning are fresh stimulus talk from the ECB’s Draghiand escalating Ebola infection rate predictions which appear to be stoking Dollar safe haven interest. In lookingahead, the Dollar is likely to get an additional lift from this morning’s new home sales results, which are expectedto rise by more than 3% over the prior month. However, later in the trading session, a speech from US Fedmember Evans on slack in the US labor market, could serve to bring the Dollar back to reality. Pushed into theDollar at current levels, we favor a temporary return to consolidation chart support down at 84.33, but until theDollar closes below even more critical consolidation support down at 84.18, we won’t assume a major shift downin the Dollar trend.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, sosome caution is warranted. A positive signal for trend short-term was given on a close over the 9-bar movingaverage. The market tilt is slightly negative with the close under the pivot. The near-term upside objective is at85.15. The market is approaching overbought levels with an RSI over 70. The next area of resistance is around85.01 and 85.15, while 1st support hits today at 84.60 and below there at 84.33.