The Dollar has ranged up again overnight and not surprisingly it has also reached up to the highest level since June of 2010. Some will suggest that the US election provided the brunt of the upward extension in theDollar overnight while others will suggest that weak European and Chinese economic news provided theGreenback its lift. Looking at the monthly charts one can’t rule out a further climb to the 90.00 level especially ifUS private employment data today and or the payrolls on Friday show anything positive. Keep in mind, economicdifferential competition is virtually nonexistent right now and the Dollar bulls only need slightly positive data pointsto further their case. Eventually the US Dollar gains will require brisk activity in the US to extend, but for now thepath of least resistance looks to remain up off anything positive from US data.
Technical Outlook: Rising stochastics at overbought levels warrant some caution for bulls. The closeabove the 9-day moving average is a positive short-term indicator for trend. The swing indicator gave amoderately negative reading with the close below the 1st support number. The next upside objective is 87.58. Thenext area of resistance is around 87.37 and 87.58, while 1st support hits today at 86.97 and below there at 86.77.