Another new high for the move as a large portion of the world is thought to be mired in slow economic conditions and the trade in general still thinks the US Fed will eventually begin to raise interest rates. With prodemocracyprotests in China reportedly discouraging retain sales in the region, reports of a rail strike in Germanyand Euro zone Consumer Confidence readings falling in September, the Dollar has no competition. Adding intothe macro-economic edge for the Dollar is weaker than expected UK mortgage approvals and the prospect offavorable US data later today from Personal Income and Texas manufacturing. However, the Dollar’s “combined”spec and fund Net Long position has hit a new record level at 64,531 contracts which means bullish sentiment isin danger of becoming excessive. The Commitments of Traders Futures and Options report as of September 23rdfor US Dollar showed Non-Commercial traders were net long 56,934 contracts, an increase of 3,598 contracts.The Commercial traders were net short 64,530 contracts, an increase of 3,489 contracts. The Non-reportabletraders were net long 7,597 contracts, a decrease of 108 contracts. Non-Commercial and Non-reportablecombined traders held a net long position of 64,531 contracts. This represents an increase of 3,490 contracts inthe net long position held by these traders.
Technical Outlook: The rally brought the market to a new contract high. The daily stochastics gave abullish indicator with a crossover up. Rising stochastics at overbought levels warrant some caution for bulls. Apositive signal for trend short-term was given on a close over the 9-bar moving average. A positive setup occurredwith the close over the 1st swing resistance. The next upside objective is 86.23. With a reading over 70, the 9-dayRSI is approaching overbought levels. The next area of resistance is around 86.04 and 86.23, while 1st supporthits today at 85.46 and below there at 85.05.