The Dollar wasn’t able to claw out a higher high overnight and that isn’t surprising considering thepotentially for non-descript scheduled data flows later today. Given the residual strength in US Treasuries, theDollar bulls might have to continue to fight an uphill battle on the macro-economic differential front as US data hasbeen mixed and the trade has left a fairly high bar in place for the US economy. In other words, the Dollarprobably needs to see definitively stronger than expected readings to fully benefit, especially with the view towardthe Euro zone slightly improved and reports of positive growth in Spain seen overnight. Unfortunately the tradeexpects to see a slight decline in claims but without a decline in excess of 10,000 we doubt the September Dollarwill charge right back to fresh new highs for the month.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Theclose above the 9-day moving average is a positive short-term indicator for trend. A positive setup occurred withthe close over the 1st swing resistance. The near-term upside objective is at 80.80. The 9-day RSI over 70indicates the market is approaching overbought levels. The next area of resistance is around 80.73 and 80.80,while 1st support hits today at 80.49 and below there at 80.31.