While the Dollar failed to make a fresh new high for the move in the wake of the latest FOMC statement, the Dollar remains in favor off the premise that the US recovery remains solid. The Dollar remained in favor overnight despite news of a fresh record low in a German unemployment reading! The trade is probably pushing money toward the Dollar because of talk of fresh Russian sanctions, signs of defiance by the newly elected Greek PM and also because of further weakness in the Russian currency. It is also likely that the Dollar is catching a bid because of expectations of a decline in US initial claims later today and from expectations of a minor gain in US pending home sales figures. Up-trend channel support in the March Dollar index is seen 94.49 and that support channel rises to 94.79 on Friday.
Technical Outlook: Momentum studies are trending lower from high levels which should accelerate a move lower on a break below the 1st swing support. The close above the 9-day moving average is a positive short-term indicator for trend. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next downside objective is now at 94.02. The market is approaching overbought levels with an RSI over 70. The next area of resistance is around 95.22 and 95.39, while 1st support hits today at 94.53 and below there at 94.02.