The Dollar is in favor to start today perhaps because of expectations for another positive reading froma private regional home price survey to be released later this morning. It is also possible that the Dollar is seeingsome lift from EU comments hinting at deflating the high flying Euro. While the Case-Schiller readings might postmore gains, that news could be offset by a decline in new US residential home sales figures. While the marketsdon’t typically pay much attention to weekly chain store sales readings, those results might garner some attentionthis morning if they continue to show a gradual recovery from the weather induced slide in activity seen earlier thisyear. The June Dollar index looks to have close-in support at 80.00 but the talk of rising US rates yesterday, can’tbe expected to provide an ongoing lift to the Greenback ahead.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. Themarket’s close below the 9-day moving average is an indication the short-term trend remains negative. Themarket’s close below the pivot swing number is a mildly negative setup. The next downside objective is now at79.10. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance isaround 79.61 and 79.84, while 1st support hits today at 79.25 and below there at 79.10.