Although it has backed off from the overnight highs, the Dollar continues to hold onto mild strength thismorning and is close to unchanged levels now for the month of December. Given the Fed’s emphasis on “datadependence”, it has been impressive that the Dollar has been able to maintain a generally positive tone in spite ofsome fairly weak readings for Initial Jobless Claims and Existing Home Sales. With the Dollar holding its groundabove the 50-day moving average and on-track for a sizable weekly reversal, there is clearly potential for upsidefollow-through heading into the weekend. Unless there are some surprise developments with the final reading onthird quarter US GDP, the Dollar should be able to maintain a positive tone through the balance of today’s trading.The Dollar may climb up towards the 81.04 level later this morning, and looks to have come through a turbulenttrading week with fresh upside momentum.
Technical Outlook: The cross over and close above the 60-day moving average indicates thelonger-term trend has turned up. Momentum studies are rising from mid-range, which could accelerate a movehigher if resistance levels are penetrated. The market now above the 18-day moving average suggests theintermediate-term trend has turned up. It is a mildly bullish indicator that the market closed over the pivot swingnumber. The near-term upside target is at 80.96. The next area of resistance is around 80.88 and 80.96, while 1stsupport hits today at 80.67 and below there at 80.54.