Apparently data from the US on Tuesday tripped up the flow of money toward the Greenback.Therefore an active slate of US data later this morning is likely to be a critical junction for the currency trade. Expectations call for a moderately large jump in housing starts and a +0.4% gain in Industrial production readingsand the Dollar needs to see several of today’s data points meet and exceed expectations to see a move backabove the 80.00 level. Declining volume on the recent rally attempt suggests a lack of bullish resolve toward theDollar, but that might also be the result of a lack of consensus throughout the currency markets.
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.