The action in the Dollar remains unimpressive perhaps because the flow of US economic data thisweek has remained unimpressive. In fact, traders could suggest that US economic data is relatively slack whencompared to the Euro zone. With more favorable German April Ifo readings this morning and an uptick in UK CBIretail sales volumes, the US had better see a better than expected claims result. In fact, expectations for initialclaims call for another rise, but that potentially undermining result for the Greenback might be countervailed by a2% rise in US Durable goods. However, it does seem as if the pattern of good data matched by slack data willcontinue from the US and that leaves the bear camp with an edge in the Dollar. Near term support is seen in theJune Dollar down at 79.77 and it could take a rise back above an old double high of 80.06 to turn the technicaltide away from the bear camp.
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.