The Dollar has regained some positive traction overnight as renewed foreign easing prospects take the focus over what the Fed might do next week. Chinese easing and lingering uncertainty toward Greece should leave the Dollar with a slight fundamental edge today. However, the US scheduled economic report slate today would appear to lack the capacity to rekindle a strong upward track in the Dollar. In fact, the most likely element to lift the Dollar today will be news that French Industrial production declined but with a strong smell of deflation still hanging in the air in the wake of more weakness in crude oil prices this morning, the Dollar could be held in check by anticipation of a surprise dovish US Fed result next week.
Technical Outlook: The daily stochastics have crossed over down which is a bearish indication. Momentum studies trending lower from overbought levels is a bearish indicator and would tend to reinforce lower price action. A positive signal for trend short-term was given on a close over the 9-bar moving average. It is a slightly negative indicator that the close was under the swing pivot. The next downside target is now at 87.84. The next area of resistance is around 89.55 and 90.10, while 1st support hits today at 88.42 and below there at 87.84.