While the Dollar has continued to trade back off this week’s highs, it remains within close proximity tothis week’s highs. The bull camp will suggest that a series of geopolitical threats are supportive of the Dollar, whilethe bear camp will suggest that the Dollar wasn’t really able to capitalize on some fairly significant geopoliticaldevelopments this week. However, US scheduled data flows have continued to be choppy with a sharper thanexpected decline in US Housing starts countervailing a down tick in claims and an outsized rise in the Philly Fedbusiness Index yesterday. Given the lack of definitive reaction in the Dollar to data earlier this week, we doubt theDollar will be able to take definitive direction from some US consumer sentiment readings later this morning.Therefore the Dollar is likely to waffle around both sides of unchanged until the Ukrainian situation produces thenext story line.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Apositive signal for trend short-term was given on a close over the 9-bar moving average. The daily closing pricereversal down puts the market on the defensive. It is a slightly negative indicator that the close was under theswing pivot. The near-term upside objective is at 80.71. The next area of resistance is around 80.63 and 80.71,while 1st support hits today at 80.51 and below there at 80.47.