The Dollar is fighting its way back up on its charts in the wake of soft Euro zone business growth and slack EU order figures. Some of the weakness in the Dollar over the last 24 hours was brought on by fears thatthe US political situation was set to deteriorate significantly in the wake of unilateral immigration reform from thePresident. Countervailing the potential geopolitical drag on the Dollar is the idea that US claims later this morningwill show minor forward progression in the recovery of the US jobs sector. One also has to think that a flurry ofslack economic readings from Germany, France and Italy overnight provides the Dollar with a macro-economicedge. In the end, the big question for the Dollar is whether or not the Greenback will track higher off its data edge,or if political fighting will take control of the trade and drag the Dollar lower. Ultimately the trend in the Dollarremains up.
Technical Outlook: Momentum studies are trending lower from high levels which should accelerate amove lower on a break below the 1st swing support. The close below the 9-day moving average is a negativeshort-term indicator for trend. The market’s close below the pivot swing number is a mildly negative setup. Thenext downside target is now at 87.17. The next area of resistance is around 87.93 and 88.13, while 1st supporthits today at 87.45 and below there at 87.17.