The Dollar sits points poised just below the recent highs in the wake of generally positive US scheduled data last week and ideas that several Non-US central banks are poised to add further easing. Reports of negative growth being registered in Russia, a lack of forward movement in Greek political problems and expectations for more positive US data this week leaves the Dollar poised for move gains ahead. A recent hook up in open interest in the Dollar on the rise above 90.00 suggests that the trade is participating in the Dollar rally despite the short term overbought condition that has surfaced in the wake of the last two weeks 250 point rally in the Dollar index. In our opinion the only thing holding back the Dollar is higher energy prices and a mostly stabile Russian currency.
Technical Outlook: Rising stochastics at overbought levels warrant some caution for bulls. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The daily closing price reversal up on the daily chart is somewhat positive. It is a mildly bullish indicator that the market closed over the pivot swing number. The near-term upside objective is at 90.56. The next area of resistance is around 90.46 and 90.56, while 1st support hits today at 90.16 and below there at 89.97.