The Dollar continues to slide this morning despite IMF calls for more ECB action to head off deflation!Apparently the Fed’s confidence in a slow recovery is not given that much credence by the international community, as the Dollar this morning has fallen down to the lowest level since May 21st. The Dollar is so muchout of favor that a surprise softening of UK retail sales in May, the promise of easing measures from the Swissand concerns over an Argentine bond default have failed to prompt safe haven buying interest in the Greenback.While the trade expects the US economy to be slack, traders should be a little mindful of the soft economic biasinto the US initial claims results and the Philly Fed Business outlook release later this morning. While LeadingIndicators will also be important, the early data is likely to set the tone. In short, the US Dollar has to see a sweepof positive data or the Dollar might be poised to slide toward the mid May spike lows of 80.06. A critical 50 daymoving average sits down at 80.21 and to shift the Dollar bias away from the bull camp, probably requires arecovery back above 80.50.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The close below the 18-day moving average is an indication the intermediate-term trend has turned down.The daily closing price reversal down is a negative indicator for prices. The swing indicator gave a moderatelynegative reading with the close below the 1st support number. The next downside objective is now at 80.11. Thenext area of resistance is around 80.75 and 81.11, while 1st support hits today at 80.25 and below there at 80.11.