Coming out of the Christmas holiday, the Dollar is holding onto a lukewarm tone although pricesremain firmly within this week’s consolidation range. While there have been rumblings out of China, Thailand andTurkey to provide a modest boost of safe-haven support, the Dollar has been unable to regain upside momentumsince the FOMC meeting. Last week’s Fed tapering decision has blunted the impact of recent positive US dataresults, so the Dollar may need to see consistent strength in upcoming economic numbers before lifting clear oflast week’s high. Haphazard Initial Jobless Claims readings during recent weeks may limit that number’s ability togive the Dollar strong support this morning. The Dollar should find support around the 80.58 level later thismorning, and may need to see fresh safe-haven concerns to make a strong move above these price levelsthrough the end of this year’s trading.
Technical Outlook: Momentum studies are trending higher from mid-range, which should support amove higher if resistance levels are penetrated. A positive signal for trend short-term was given on a close overthe 9-bar moving average. The close over the pivot swing is a somewhat positive setup. The next upside objectiveis 80.83. The next area of resistance is around 80.74 and 80.83, while 1st support hits today at 80.60 and belowthere at 80.54.