While failing to lift decisively clear of its recent lows, the Dollar is showing modest signs of strengthearly in Thursday’s trading session. Global markets may be reflecting some sense of risk aversion heading intoyear’s end, although the Dollar still has to get past the Fed tapering question to find any decent upsidemomentum. There will be several “top-tier” US data points for the market to digest, with today’s Retail Salesreading looking to be a critical hurdle for the Dollar to clear in order to build this morning’s early gains. With aDecember or January Fed tapering move still in need of consistent strength from upcoming US data, the Dollarhas plenty of work ahead of it to fully recover from this month’s chart damage. The Dollar may climb up towardsthe 80.23 level after the US data window, but needs to find more evidence supporting near-term Fed tapering inorder to fuel a recovery rally from these current price levels.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. Themarket’s close below the 9-day moving average is an indication the short-term trend remains negative. It is aslightly negative indicator that the close was lower than the pivot swing number. The next downside objective isnow at 79.60. The next area of resistance is around 80.03 and 80.19, while 1st support hits today at 79.73 andbelow there at 79.60.