Surprisingly the Dollar isn’t showing definitive resolve despite a series of potential global safe havenissues dominating the headlines. It is possible that the threat of western sanctions against Russia is holding back the Dollar as the US might be targeted by Russia by retaliation against US Treasuries or the Dollar and it is alsopossible that the let down in global macro economic sentiment is serving to increase speculation of a temporarypause in US tapering in next week’s FOMC meeting. News that Chinese might cut bank reserve requirements inan effort to cushion growth might be another issue limiting the Dollar’s upside track. The US economic scheduleremains thin again today and most of the focus will remain on upcoming Chinese data due out on Thursday. Thecharts looks bearish and the Dollar hasn’t been granted safe haven status despite the dual trouble spots ofUkraine and Chinese credit.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may bedrying up soon. The market’s short-term trend is negative as the close remains below the 9-day moving average.The daily closing price reversal down puts the market on the defensive. The close over the pivot swing is asomewhat positive setup. The next downside objective is now at 79.57. The next area of resistance is around79.87 and 80.02, while 1st support hits today at 79.65 and below there at 79.57.