The Dollar was able to forge another higher high overnight but into the US Tuesday trade, the Dollar has fallen back away from those highs. The Dollar might be seeing some profit taking in the wake of slightly better than expected Italian economic results overnight but expectations for a gain in a private US Home price survey and noted improvement in Consumer Confidence should rekindle interest in the long side of the Dollar later this morning. In fact, residual uncertainty toward Greece and talk of soft manufacturing data from China should leave the US Dollar entrenched in its upward pattern today. Up-trend channel support in the March Dollar Index is seen down at 90.25 today and that support level rises to 90.42 on Wednesday.
Technical Outlook: The market made a new contract high on the rally. Rising stochastics at overbought levels warrant some caution for bulls. A positive signal for trend short-term was given on a close over the 9-bar moving average. The market setup is supportive for early gains with the close over the 1st swing resistance. The next upside target is 90.97. The market is becoming somewhat overbought now that the RSI is over 70. The next area of resistance is around 90.81 and 90.97, while 1st support hits today at 90.30 and below there at 89.93.