The Dollar is back in control again especially in the wake of fresh easing from the PBOC and from more promises of easing from the ECB overnight. So far, it seems like the US Dollar is avoiding significantheadwinds from the brewing US political battle on immigration issues and with the US economic report slate todaysomewhat thin, the Dollar might be allowed to rise to and into new high ground during the session today. Up-trendchannel support in the December Dollar Index is seen at 87.50 today but that trend-line rises to 87.63 on Monday.Technical and fundamental factors favor the bull camp in the Dollar ahead.
Technical Outlook: Stochastics turning bearish at overbought levels will tend to support lower pricesif support levels are broken. The market’s close below the 9-day moving average is an indication the short-termtrend remains negative. The downside closing price reversal on the daily chart is somewhat negative. With theclose higher than the pivot swing number, the market is in a slightly bullish posture. The next downside target is87.27. The next area of resistance is around 87.94 and 88.21, while 1st support hits today at 87.47 and belowthere at 87.27.