The Dollar has generally managed to respect its 50 and 100 day moving averages on this week’s sharpwashout and that provides the Greenback with some support. The Dollar is tracking higher this morning in theface of somewhat slack German May PPI results and a slight up-tick in US/Russian tensions. In retrospect, USscheduled data this week was barely strong enough to favor the Dollar in the Macro-economic differentialargument and with the schedule today empty, the focus of the currency trade might be centered on Iraq and theUkraine. In conclusion, the Dollar appears to have found some value on the charts but that value appears to betechnical and not fundamental in nature. Initial support in the September Dollar index this morning is seen at80.38 which is also the 100 day moving average.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The close below the 9-day moving average is a negative short-term indicatorfor trend. The close below the 1st swing support could weigh on the market. The next downside objective is80.11. The next area of resistance is around 80.53 and 80.66, while 1st support hits today at 80.26 and belowthere at 80.11.