Volatility in the Dollar continues to escalate but the December Dollar contract continues to generally respect critical chart support of 85.00. However, the bull camp in the Dollar is facing an uphill battle againstongoing slowing fears today as initial claims and the Philly Fed business survey are both expected to showweakness later this morning. Cushioning the Dollar today is news from the Euro zone that September annualinflation figures fell to a 5 year low and increased fears in the Ukraine of an impending shortfall in natural gassupplies which in turn are surfacing because of reduced shipments from Gazprom. In the short term, an ongoingthreat of fresh US Ebola headlines and expectations of weak US scheduled data later this morning should set thestage for some initial selling of the Dollar. We at least expect a temporary slide back below 85.00 through the USdata window today.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The intermediate trend has turned down with the cross over back below the 18-day moving average. Theoutside day down is a negative signal. The defensive setup, with the close under the 2nd swing support, couldcause some early weakness. The next downside objective is now at 83.56. The next area of resistance is around85.79 and 86.76, while 1st support hits today at 84.20 and below there at 83.56.