The Dollar is finding mild pressure while keeping within a relatively tight overnight price range, but willneed to get past key US jobs data in order to regain upside momentum and challenge last week’s high for themove. Comments from Fed President Dudley that US investors need to be patient with the timing of a US ratehike have created fresh headwinds for the Dollar early today, but Dudley’s reputation as a policy “dove” may havesoftened the impact of his comments. While last night’s Chinese data was mildly disappointing, inflation numbersfrom major Euro zone nations avoided any major surprises which in turn have shifted the Dollar’s focus backtowards domestic conditions. Last Friday’s set of US Employment readings were decent, but certainly not strongenough to overcome any pressure from a jump in Jobless Claims that have held in close proximity to multi-yearlows over the past few weeks. The Dollar continues to hold a competitive advantage over most major currenciesand remains a safe-haven destination of choice, so it may take an Initial Jobless Claims reading above the300,000 level to take prices well below their current consolidation zone. Given the prospects for weak Euro zoneGDP readings on Friday, aggressive traders may look at a move down towards Monday’s low of 87.21 as abuying opportunity.
Technical Outlook: Momentum studies trending lower from overbought levels is a bearish indicatorand would tend to reinforce lower price action. The close above the 9-day moving average is a positive short-termindicator for trend. The close over the pivot swing is a somewhat positive setup. The next downside objective is87.31. The next area of resistance is around 88.15 and 88.32, while 1st support hits today at 87.65 and belowthere at 87.31.