The Dollar has consolidated recent gains within a tight trading range this morning as the market has already put Wednesday’s critical events in its rear-view mirror. The Fed provided both an “as-expected” taperingmove of $10 billion as well as balanced rhetoric between hawkish inflation commentary with somewhat dovishstatements on the US Employment situation. Combined with a lower than expected reading from the ADPEmployment survey, this has put enough emphasis on upcoming US jobs data for the Dollar to put some brakeson its recent advance. A potential bounce back in Initial Jobless Claims above the 300,000 level as well as theChallenger Job Cuts survey will give the market plenty to digest this morning, but it may come down to whethertomorrow’s Non-Farm Payroll number will post another 200,000-plus gain for the Dollar to see another strongupside extension. Look for near-term support around the 80.35 area but for now, the Dollar will continue to holdthe upper hand on most major global currencies.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to supportreversal action if it occurs. The market’s close above the 9-day moving average suggests the short-term trendremains positive. The market setup is supportive for early gains with the close over the 1st swing resistance. Thenear-term upside target is at 81.84. The market is approaching overbought levels with an RSI over 70. The nextarea of resistance is around 81.68 and 81.84, while 1st support hits today at 81.33 and below there at 81.12.