The Dollar is showing signs of returning to its recent highs in the wake of a positive data flow to start the week, extremely positive analyst forecasts and talk that Russian sanctions are serving to chill westernEuropean economic activity. In fact, some analysts overnight suggested that the Dollar is poised for months ofgains and that some currencies like the Yen and Euro might suffer the brunt of the Dollar rise. With Fed memberPlosser downplaying any concerns of a rising US Dollar at the Fed overnight that should embolden the bull campin the current environment, There should be only fleeting resistance in the Dollar today up at the old high of 88.31especially given the early new highs in US equities and the mere threat of additional sanctions against Russia.
Technical Outlook: Rising stochastics at overbought levels warrant some caution for bulls. The closeabove the 9-day moving average is a positive short-term indicator for trend. The daily closing price reversal up isa positive indicator that could support higher prices. With the close higher than the pivot swing number, themarket is in a slightly bullish posture. The next upside objective is 88.45. The next area of resistance is around88.25 and 88.45, while 1st support hits today at 87.54 and below there at 87.02.