The Dollar starts out higher today and within striking distance of the old high. Favorable US scheduled data this week combined with fresh promises of a data dependent Fed clearly provides the Dollar bull camp with an edge going forward. While the US data slate today isn’t overly compelling, there will be some Fed speeches that could provide the impetus for a higher high. About the most significant countervailing force for the Dollar is somewhat favorable German economic vibes from yesterday’s readings and generally positive global equity
market action. Pushed into the Dollar, one has to favor the upside as confidence is high toward US prospects in the wake of this week’s data flows.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication. Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The close over the pivot swing is a somewhat positive setup. The near-term upside objective is at 89.90. The next area of resistance is around 89.70 and 89.90, while 1st support hits today at 89.22 and below there at 88.92.