The Dollar was able to claw out a fresh higher high overnight but the move wasn’t overly definitive.However, the path of least resistance is pointing upward today as estimates for the Non-farm payroll report latertoday are somewhat lofty. Estimates center around both sides of the +200,000 level and the trade also sawcomments from the Fed overnight that seems to increase the latitude of the Fed in its policy making decisions. Inother words, the Fed seems to be trying to downplay the influence of the headline payroll results and that hasprobably restricted the rate of gain in the Dollar this morning. While the Dollar would seem to have a portion of apositive number factored in the Dollar, with the low to high rally this week of 58 points, there might not besignificant resistance today until the 81.00 level. The trade is assuming the drag from the winter weather will bepast after the US payroll readings are released later this morning.
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.