The Dollar this morning sits just above a fresh downside breakout on the charts! In fact, despite moreslack economic results from Germany, the Dollar has remained under pressure and that is very telling. Perhapsthe Dollar was undermined by comments from the BOE’s Carney who suggested that earnings growth would pickup in the second half of this year. With an extremely active slate of US scheduled data this morning and 3 Fedspeeches, the Dollar will have no shortage of information to react to this morning. Expectations call for anothermodest rise in regional home prices, a minor uptick in Consumer Confidence and a marginal rise in newresidential home sales figures. There is also a Richmond Fed Business activity Report and some US Treasuryauction supply today. Given the chart action, the Dollar has to prove its economy is moving forward, with a cleansweep of positive data points, or traders will probably press the Dollar down to the lowest levels since May 21st.
Technical Outlook: A negative indicator was given with the downside crossover of the 9 and 18 barmoving average. Momentum studies are still bearish but are now at oversold levels and will tend to supportreversal action if it occurs. The market’s close below the 9-day moving average is an indication the short-termtrend remains negative. It is a slightly negative indicator that the close was lower than the pivot swing number.The next downside objective is 80.22. The next area of resistance is around 80.41 and 80.51, while 1st supporthits today at 80.26 and below there at 80.22.