October 19 - Dollar Update

Though the dollar appears to be giving up the ghost for the 76 support level, one critical factor remains--the euro.

Keep an eye on the 1.50 euro / US dollar pair.  That has been resistance before for the euro, and only the euro breaking the 1.50 level will send the dollar down below 76-range recovery support.

We should have confirmation of a rebound in the dollar, or a breakdown, overnight.  Again, a minor rebound in the dollar wouldn't be surprising here, but given the incredibly bearish action we've seen around what should be a reasonable support level, neither would a complete breakdown.  The 50 day moving average should act as a ceiling for any dollar move.