The Dollar has soared to fresh new highs overnight in the wake of a series of unchanged Euro zone and German jobless rate results. In fact, the Dollar has also continued to rise in the face of stronger thanexpected UK growth results for the 2nd quarter. However, the news flow from Europe highlights ongoing declinesin inflation and that in turn has fostered calls for fresh easing from the ECB again and the presence of ongoingprotests in Hong Kong also leaves concerns of additional headwinds for the Chinese economy in place. With anextremely active US scheduled report slate today, one might expect just enough positive data to extend theDollar’s stellar rise. Case-Shiller is expected to show a rise in home prices, while Consumer Confidence is alsoexpected to have improved slightly and that should allow a well-entrenched up trend in the Dollar to extend.
Technical Outlook: The market made a new contract high on the rally. Daily stochastics have riseninto overbought territory which will tend to support reversal action if it occurs. The market’s close above the 9-daymoving average suggests the short-term trend remains positive. The daily closing price reversal down is anegative indicator for prices. With the close higher than the pivot swing number, the market is in a slightly bullishposture. The near-term upside target is at 86.09. The market is becoming somewhat overbought now that the RSIis over 70. The next area of resistance is around 85.91 and 86.09, while 1st support hits today at 85.57 and belowthere at 85.41.