The Dollar initially forged a lower low for the move but was able to respect support of 80.50. In total USscheduled data this week has been strong enough to discourage ongoing selling of the Dollar but the data onceagain hasn’t been strong enough to fully shift the Dollar back into a dominating role. The Dollar might be draftingsome fresh support from a slight decline in German some economic expectations results and it might also begarnering some lift from talk that the US Fed might ultimately end up raising rates quicker than current marketexpectations. Some would-be Dollar bulls are probably set to get long off expectations of supportive dialogue fromthe Fed, as few expect the Fed to damage sentiment by pointing out the weaknesses in the US economy. TheDollar is also garnering some fresh lift from developing weakness in the Yuan and rupee. For the near term,expect support of 80.50 to hold and for the Dollar to effectively buy the rumor of the Fed over the coming 36hours.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lowerespecially if support levels are taken out. The intermediate trend has turned down with the cross over back belowthe 18-day moving average. The close below the 1st swing support could weigh on the market. The nextdownside target is now at 80.29. The next area of resistance is around 80.58 and 80.77, while 1st support hitstoday at 80.35 and below there at 80.29.