A sweep of headlines overnight extends the fear of global slowing and leaves the Dollar with an edge. In fact, economic data flows from the Euro zone and Germany in particular leaves the Dollar with a fresh bid.Limiting the Dollar on the upside today is residual drag from dovish Fed comments in the prior trading session.With the Fed’s Evans yesterday warning against premature US rate hikes and suggesting that global slowing ispresenting the US with headwinds, the bullish bid for the Dollar is slightly tempered. In the end, talk of a return torecession in Germany leaves the Dollar on a pedestal but with a thin US economic report slate again today, theDollar might only win by default with slow measured gains on the charts.
Technical Outlook: Momentum studies trending lower at mid-range could accelerate a price break ifsupport levels are broken. The close under the 18-day moving average indicates the intermediate-term trendcould be turning down. The close below the 1st swing support could weigh on the market. The next downsideobjective is 85.00. The next area of resistance is around 85.67 and 86.07, while 1st support hits today at 85.14and below there at 85.00.