The Dollar has started out a touch weaker today but we don’t see the impetus for a selling wave in theDollar today. In fact, we expected US Personal Income and Spending results to provide a minimal underpin forthe Dollar. Up-trend channel support in the June Dollar is seen today at 80.50 but it could take something betterthan a +0.1 gain in Personal Spending to put the June Dollar index into a fresh upside breakout. An issue thatmight provide the Dollar with a late lift this morning is the potential for a flurry of calls for an ECB easing nextweek. While we don’t see the Dollar garnering a significant edge today pushed into the market today we favor theupside track. The biggest trick for the bull camp in the Dollar today might be the Chicago ISM survey that will bereleased in the mid-morning trade as expectations for that report call for softer readings.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to supportreversal action if it occurs. The close above the 9-day moving average is a positive short-term indicator for trend.The market’s close below the pivot swing number is a mildly negative setup. The next upside objective is 80.72.The next area of resistance is around 80.63 and 80.72, while 1st support hits today at 80.43 and below there at80.31.