The Dollar has disappointed some players this week as it has not forged a fresh upside breakout in the face of massive global slowing fears and expectations of historically aggressive ECB QE. Some might suggest that the last US employment report wasn’t overly impressive while others will suggest that the Dollar has lacked definitive scheduled data flow this week to justify higher highs on the charts. The Dollar might be limited by expectations of a negative US retail sales result later this morning. However, the primary event of the trading session might be the US Fed Beige Book release which could shed some light on the off and on debate regarding a 2015 US rate hike. While Non-Dollar currencies look to remain weak, we are not sure the US scheduled report slate today is capable of driving the Dollar into new high ground.
Technical Outlook: Stochastics turning bearish at overbought levels will tend to support lower prices if support levels are broken. The market’s close above the 9-day moving average suggests the short-term trend remains positive. It is a mildly bullish indicator that the market closed over the pivot swing number. The next downside objective is now at 91.78. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 92.75 and 92.99, while 1st support hits today at 92.15 and below there at 91.78.