The Dollar remains in favor as US data flows have improved growth views at the same time that hintsof easing have undermined the Euro. With the head of the US Fed speaking later this morning, the Dollar is likelyto see more gains as the Fed is likely to hint at an ongoing tapering, as the Fed attempts to get back to more of anormal condition with respect to policy. Adding into the upward track in the Dollar to start is news that AprilGerman ZEW expectations results were weak and some inflation data from the UK was found to be a little soft.With an extremely active US scheduled report slate today and a series of Fed speeches, the path of leastresistance in the Dollar should remain up. Near term targeting for the June Dollar is seen up at 80.20 and perhaps80.40 if the current flow of fundamental information remains in place.
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.