Apparently the flow of US data this week has reversed sentiment toward the Dollar. However, a goodportion of the recovery off this week’s low is probably built on the idea that this morning’s payroll result will comein above initial expectations and above the prior month’s level. Some might suggest the Dollar is catching someadditional buying from slack German economic readings overnight, from anticipation of fresh easing action fromthe ECB and from the improving US economic track. One might even suggest the Dollar is catching some minorbuying from reports of a fresh credible terrorism threat against international flights into the US. Another issue thatgives the bull camp an edge in the Greenback, is the technically oversold condition of the Dollar from theextensive liquidation of the last 30 days. Support in the September Dollar moves up to 79.98 and resistance mightnot be seen until the 80.12 level.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. The market has abullish tilt coming into today’s trade with the close above the 2nd swing resistance. The next downside target is79.76. The next area of resistance is around 80.06 and 80.14, while 1st support hits today at 79.88 and belowthere at 79.76.