USD Mid-day Analysis

A fresh higher high for the move overnight in the Dollar is partially the result of a series of international easing moves by India and China. The Dollar is also garnering ongoing lift from ideas that the US Fed is locked and loaded for a June rate hike. Tempering the upward track in the Dollar is favorable Euro zone business growth and hints that UK services hiring surged sharply last month. It is also possible that comments from various Fed members directly ahead are serving to lift the Dollar. Apparently the Dollar is poised to return to contract highs even if US scheduled data flows show only marginal growth. Private jobs report expectations call for gains of 215,000 to 240,000 which is below the prior US monthly reading but apparently the Dollar bulls will be happy with the moniker that non-farm payrolls this Friday are likely to extend their streak of readings coming in above 200,000. There is little resistance in the Dollar until the old high of 95.85.

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 market could take on a defensive posture with the daily closing price reversal down. The close over the pivot swing is a somewhat positive setup. The next upside objective is 95.86. The next area of resistance is around 95.68 and 95.86, while 1st support hits today at 95.23 and below there at 94.95.