The Dollar has regained some footing off news of softer Chinese commodity imports in July and from aslight decline in anxiety toward the situations in the Ukraine and Iraq. Reports of rising Chinese interest in USTreasuries might be another issue propping up the Dollar, which has surprisingly remained in positive groundrelative to the Swiss and Euro. In other words, a slight tempering of anxiety in the Ukraine has failed to liftoversold Swiss and Euro currencies and that suggests traders still prefer the Dollar until there is a more definitiveend to the crisis in the Ukraine. Without US economic reports today, the Dollar should have close-in support at81.465 but longer term up trend channel support from the July lows is seen today at 81.36. The Commitments ofTraders Futures and Options report as of August 5th for US Dollar showed Non-Commercial traders were net long23,732 contracts, an increase of 4,253 contracts. The Commercial traders were net short 31,141 contracts, anincrease of 5,063 contracts. The Non-reportable traders were net long 7,409 contracts, an increase of 810contracts. Non-Commercial and Non-reportable combined traders held a net long position of 31,141 contracts.This represents an increase of 5,063 contracts in the net long position held by these traders.
Technical Outlook: Stochastics turning bearish at overbought levels will tend to support lower pricesif support levels are broken. The market’s short-term trend is negative as the close remains below the 9-daymoving average. The close below the 1st swing support could weigh on the market. The next downside objectiveis 81.12. Daily studies pointing down suggests selling minor rallies. The next area of resistance is around 81.62and 81.82, while 1st support hits today at 81.28 and below there at 81.12.