The Dollar might have gotten a little ahead of itself with the peak yesterday as sagging US corporatesales guidance and impressive UK employment news temporarily undermines the total bullish rule of the Dollar. With the US scheduled report slate remaining thin again today and the UK employment news ringing in theheadlines to start, the Dollar is set to be under some minor pressure. It could take more significant declines in USequities and or weak private chain store sales readings later this morning to keep the pressure up on the Dollar.In other words the Dollar might see some pressure but the US economy retains a distinct edge over the Euro andtherefore corrective action might be limited. In fact, with the FOMC meeting looming next week, it could take adistinct shift away from a tapering move bias, to even push the Dollar back to the mid January lows of 80.60.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to supportreversal action if it occurs. A positive signal for trend short-term was given on a close over the 9-bar movingaverage. The market could take on a defensive posture with the daily closing price reversal down. The market tiltis slightly negative with the close under the pivot. The next upside objective is 81.65. The next area of resistanceis around 81.40 and 81.65, while 1st support hits today at 81.02 and below there at 80.90.