Trading in a tight range that has included both positive and negative territory for today’s session, the US Dollar appears to be forming a base. The sharp sell off that started last Thursday seems to have come to an end. With the threat of Syrian military intervention by the US fading more and more each day, the Dollar can return to trading on solid economic data. Today’s scheduled data should be a non-event for the Dollar; however, the next two days of data has potential. Because of this, anticipation will drive the Dollar’s pricing today. There is a general fear that US numbers may not be robust enough for the Fed to start tapering as much as once thought. Until the numbers are released over the next couple of days trading will be non-directional.
Technical Outlook
USD (SEP): Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. A negative signal for trend short-term was given on a close under the 9-bar moving average. It is a slightly negative indicator that the close was lower than the pivot swing number. The next downside target is now at 81.58. The next area of resistance is around 81.93 and 82.08, while 1st support hits today at 81.68 and below there at 81.58.