With a fresh higher high overnight it is clear that the Dollar is feeding higher off a series of slightlypositive economic readings. In fact, with the Fed’s Yellen trumpeting her concern for the US housing sector inrecent testimony and the FOMC minutes also expressing concern for US housing, it is not surprising to see theDollar ramping higher in the wake of generally favorable existing home sales results yesterday and ahead ofexpectations for 8-9% gains in new home sales results later this morning. With the world presenting a very lowbar for economic performance, it isn’t surprising to see the Dollar come into favor. In conclusion, seeing mostlypositive data and consistent gains in US equities this week, has shifted the Dollar into a weak up trend pattern.Support moves up to 80.37 and there might be little in the way of resistance seen until the 80.77 level.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to supportreversal action if it occurs. The market’s close above the 9-day moving average suggests the short-term trendremains positive. With the close higher than the pivot swing number, the market is in a slightly bullish posture.The next upside objective is 80.47. The next area of resistance is around 80.39 and 80.47, while 1st support hitstoday at 80.19 and below there at 80.05.