The Dollar remains somewhat buoyant as it was able to shake off overnight pressure to climb backtowards unchanged levels, but is finding mild pressure heading into this morning’s trading. While the US economycontinues to hold a competitive advantage over the other major economies, a lack of major US data points thisweek has left the Dollar looking more towards overseas events for its direction early today. Lukewarm data fromthe Euro zone may be providing some measure of underlying support, but comments by the Fed’s Plosser that theUS should start raising interest rates sooner than later was not seen as any major policy surprise. TheUkraine/Russian conflict appears to be heating up again, which may give the Dollar a fresh safe-haven boost laterin the session. Even so, any chance of retesting last week’s highs for the move at 88.31 may have to wait until the”big” numbers are released later this week on both sides of the Atlantic.
Technical Outlook: A bearish signal was triggered on a crossover down in the daily stochastics.Momentum studies trending lower from overbought levels is a bearish indicator and would tend to reinforce lowerprice action. A positive signal for trend short-term was given on a close over the 9-bar moving average. Themarket could take on a defensive posture with the daily closing price reversal down. The market’s close below thepivot swing number is a mildly negative setup. The next downside objective is now at 86.98. The next area ofresistance is around 87.97 and 88.42, while 1st support hits today at 87.26 and below there at 86.98.