The Dollar enters the Friday morning trade sitting right on a potentially critical pivot point of 85.00. We would suggest that 85.00 is a bull/bear line for the currency today as the trade will be presented with a potentiallycritical reading on US residential home sales and fresh inflation readings. Expectations call for a rise in homesales but little change in CPI. The scheduled data might have less impact early on today because the trade isfocused on a Speech from the Fed Chairman just ahead of mid-session. On one hand, the Dollar probablygarners some support from positive home sales data, but in the event that Yellen leans more dovish than hawkishin her dialogue today that could set the stage for a poor finish in the Dollar for the week. Tempering the downwardpotential in the Dollar today is a lack of fresh Ebola infections but until the markets close today, traders should beon the lookout for more exposures.
Technical Outlook: The downside crossover (9 below 18) of the moving averages suggests adeveloping short-term downtrend. Momentum studies trending lower at mid-range could accelerate a price breakif support levels are broken. The close below the 9-day moving average is a negative short-term indicator fortrend. It is a slightly negative indicator that the close was under the swing pivot. The next downside objective is84.41. The next area of resistance is around 85.35 and 85.79, while 1st support hits today at 84.67 and belowthere at 84.41.