The Dollar is off balance to start this morning despite much weaker than expected Euro zone industrialoutput figures. Perhaps the Dollar is garnering some minor lift from ongoing debate among US Fed membersregarding the timing of US rate hikes or perhaps the Dollar is simply holding up against liquidation pressurebecause of favorable US equity market action. However, there is a lack of competition from other currencies andperhaps the Dollar is garnering some support from the prospect of marginally hawkish Fed testimony to Congressstarting on Tuesday! The Commitments of Traders Futures and Options report as of July 8th for US Dollarshowed Non-Commercial traders were net long 19,747 contracts, a decrease of 450 contracts. The Commercialtraders were net short 25,397 contracts, a decrease of 868 contracts. The Non-reportable traders were net long5,650 contracts, a decrease of 419 contracts. Non-Commercial and Non-reportable combined traders held a netlong position of 25,397 contracts. This represents a decrease of 869 contracts in the net long position held bythese traders.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a movehigher if resistance levels are penetrated. The market’s close above the 9-day moving average suggests theshort-term trend remains positive. The market has a slightly positive tilt with the close over the swing pivot. Thenear-term upside objective is at 80.40. The next area of resistance is around 80.32 and 80.40, while 1st supporthits today at 80.12 and below there at 79.99.