While the Dollar is slightly lower to start today the currency remains within striking distance of its recenthighs. Factory orders and Auto sales will be released today and the Dollar needs to see positive progression infactory orders to regain its bullish footing. The trade already expects to see a slight boost in US auto sales figuresand estimates are also calling for a +0.7% rise in Factory orders. The Treasury market is acting like US data ispoised to improve and traders should remain bullish toward the Dollar as long as it manages to hold this morningabove critical chart support of 80.35.
Technical Outlook: Stochastics turning bearish at overbought levels will tend to support lower pricesif support levels are broken. The market’s close above the 9-day moving average suggests the short-term trendremains positive. The market has a bullish tilt coming into today’s trade with the close above the 2nd swingresistance. The next downside target is 80.30. The next area of resistance is around 80.84 and 80.94, while 1stsupport hits today at 80.52 and below there at 80.30.