After a shaky start to the week, the Dollar has found its footing and is finding modest early strength thismorning. Quiet pre-holiday trading conditions may set the stage for volatile price action later today, but with lastnight’s Chinese central bank cash injection soothing market nerves, safe-haven support is unlikely to be muchhelp for the Dollar this morning. Post-Fed US economic data has not shown the consistent strength needed forthe Dollar to find a stronger bid, but the data has at least avoided the type of sentiment-wrecking surprises thatwould put the Greenback back on the defensive heading into the holiday. Durable Goods and New Home Saleshave been prone to some surprising results over the years, but a positive market reception for both numbersshould help the Dollar build onto this morning’s early gains. The Dollar may rise up towards the 80.86 level withdecent US data results this morning, although it still have much further work to do in order to regain the strongupside momentum seen after last week’s Fed tapering decision.
Technical Outlook: The major trend has turned down with the cross over back below the 40-daymoving average. Momentum studies are trending higher from mid-range, which should support a move higher ifresistance levels are penetrated. The close above the 9-day moving average is a positive short-term indicator fortrend. It is a slightly negative indicator that the close was under the swing pivot. The near-term upside target is at80.88. The next area of resistance is around 80.73 and 80.88, while 1st support hits today at 80.45 and belowthere at 80.31.