The Dollar would appear to be poised to range up into higher high ground even though recent Eurozone data might have been a little better than expectations. The US scheduled report slate today isn’t expected toimpact prices significantly given the nature of the data to be released today. However, the mere threat of anescalation of the tensions in the Ukraine and ideas that even more sanctions might be levied against Russiaprobably provides the Dollar with a residual flow of safe haven interest. One might also suggest that the Dollar willalso continue to see a measure of macro-economic differential inflow off the idea that Russian actions will provideadditional headwinds to the Euro-zone economy. Up-trend channel support in the December Dollar Index comesin today at 87.91 and that support level rises to 88.13 on Monday.
Technical Outlook: Daily stochastics turning lower from overbought levels is bearish and will tend toreinforce a downside break especially if near term support is penetrated. The close above the 9-day movingaverage is a positive short-term indicator for trend. The close over the pivot swing is a somewhat positive setup.The next downside objective is now at 87.57. The next area of resistance is around 87.95 and 88.08, while 1stsupport hits today at 87.69 and below there at 87.57.