The Dollar has fallen back to the lowest level since September 24th in the overnight action as the FOMC meeting minutes warnings on the rising Greenback have obviously altered market sentiment. With the Fedalso suggesting they would be careful in their attempt to hike rates, until they were sure the economy was selfsupporting,that should also keep the Dollar off balance. However, reports of extremely soft German export dataand noted concern from the Fed regarding slowing in the Euro zone should provide some support to the Dollar offits ongoing macro-economic differential edge. With a slight rise in US initial claims expected later this morningthat should leave the Dollar under pressure but the Dollar might temporarily find solid chart support down at the85.00 level.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The market’s short-term trend is negative as the close remains below the 9-day moving average. Themarket setup is somewhat negative with the close under the 1st swing support. The next downside objective is84.78. The next area of resistance is around 85.73 and 86.25, while 1st support hits today at 85.00 and belowthere at 84.78.