With another definitive upward extension in the Dollar overnight it is clear that macro-economic and interest rate differential issues are channeling money toward the Greenback. With the ECB expected to hint at theimplementation of QE later this week, the Dollar should be expected to continue to gain at the expense of theEuro and Swiss. Some might have expected the Dollar rise to have slowed over the last 24 hours as the situationin the Ukraine seemed to moderate following reports that Russian and Ukraine leaders were scheduled to meetface to face. The Dollar is probably getting follow through buying interest off the prior session’s stellar housingstarts and permits results which in comparison to international economic data, puts the US Dollar in a dominatingposition. With a Fed meeting minutes release later today, it is possible that expectations of that release will fuelgains throughout the trading session. The next resistance level in the Dollar is seen off the weekly charts up at82.61.
Technical Outlook: A bullish signal was given with an upside crossover of the daily stochastics.Momentum studies are trending higher but have entered overbought levels. The market’s close above the 9-daymoving average suggests the short-term trend remains positive. Since the close was above the 2nd swingresistance number, the market’s posture is bullish and could see more upside follow-through early in the session.The next upside target is 82.17. The market is approaching overbought levels with an RSI over 70. The next areaof resistance is around 82.08 and 82.17, while 1st support hits today at 81.78 and below there at 81.55.