The Dollar managed yet another new high overnight but was unable to hold all of the initial gains. Reports of a cease-fire in the Ukraine, slightly positive Euro zone business services PMI results and gains in a UKAugust services PMI took some steam out of the bull’s case. News of the Ukraine cease-fire logically provides theEuro and Swiss some recovery action and that in turn undermines the recent dominance of the Greenback.However, as was seen yesterday, the Dollar exhibited similar action yesterday where an initial new high for themove failed to hold but the Dollar came bounding back late in the trade. Therefore we would not be surprised tosee the Dollar regain positive momentum in the wake of a series of US scheduled data points but to finish thesession with a firm bid the Dollar will need to see mid-day US auto sales results come in positive.
Technical Outlook: A new contract high was made on the rally. Rising stochastics at overboughtlevels warrant some caution for bulls. A positive signal for trend short-term was given on a close over the 9-barmoving average. Market positioning is positive with the close over the 1st swing resistance. The next upsidetarget is 83.30. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area ofresistance is around 83.17 and 83.30, while 1st support hits today at 82.82 and below there at 82.58.