The Dollar has shown some slight retrenchment overnight in the wake of slightly better than expected Chinese import/export data. Another issue that might have applied some pressure to the Dollar is the news of aRussian troop pullback from the Ukraine. With oil prices starting out the new trading week sharply lower, thereseems to be some hope that the global economy is set to benefit from increased disposable income and that inturn might be cause to deflate the Dollar somewhat. On the other hand, the net spec and fund long positioning inthe Dollar weighed in at 59,328 contracts but that positioning might be overstated given the slide in the Dollarafter that report was compiled. A thin US economic report slate in the first two sessions of the week might allowthe bear camp a chance to control prices directly ahead. The Commitments of Traders Futures and Options reportas of October 7th for US Dollar showed Non-Commercial traders were net long 49,456 contracts, a decrease of6,729 contracts. The Commercial traders were net short 59,327 contracts, a decrease of 5,522 contracts. TheNon-reportable traders were net long 9,872 contracts, an increase of 1,207 contracts. Non-Commercial and Nonreportablecombined traders held a net long position of 59,328 contracts. This represents a decrease of 5,522contracts in the net long position held by these traders.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a move lowerif support levels are taken out. The market’s short-term trend is positive on the close above the 9-day movingaverage. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The nextdownside objective is now at 85.31. The next area of resistance is around 86.28 and 86.48, while 1st support hitstoday at 85.69 and below there at 85.31.