The Dollar generally remains in favor despite a lack of definitive upside extension on the charts. The dollar might be a little off balance from a lack of strength in recent data flows and the Dollar might also be marking time ahead of upcoming ECB easing action. On the other hand, one might have expected the Dollar to have gained off hawkish dialogue from the Fed’s Bullard, who indicated he was still eager to raise rates. The US economic report slate is thin today and that might allow for some technical back and fill action in the Dollar, especially in the wake of news that the “combined” spec and fund Net Long position in the Dollar hit a new record level at 87,190 contracts early last week. Up-trend channel support is seen in the Dollar today at 92.04 and that support rises to 92.28 on Wednesday.
Technical Outlook: The market made a new contract high on the rally. Momentum studies are trending lower from high levels which should accelerate a move lower on a break below the 1st swing support. The market’s short-term trend is positive on the close above the 9-day moving average. It is a mildly bullish indicator that the market closed over the pivot swing number. The next downside objective is now at 91.82. The market is approaching overbought levels with an RSI over 70. The next area of resistance is around 93.61 and 94.18, while 1st support hits today at 92.44 and below there at 91.82.