Despite the relatively positive undertone in the dollar (NYBOT:DX), price action has had trouble holding above the 80.700 level of resistance on the chart.
Although still positive, the momentum in the US dollar appears to be subsiding, as price action begins to level out as a result of the significant resistance pivot on the chart. This will likely be the key technical level to keep an eye on for the remainder of the week.
Local support can be seen around the 80.615 level followed by the area from 80.360 to 80.415. If the positive momentum is to remain in control of the US dollar, look for price to remain above the lower end of the previously mentioned zone (i.e. the 5/30 lows).
Both near-term and intermediate-term price action look positive at this point in time, but a confirmed breakout above 80.700 is needed to put the trend in motion. Traders should remain on their toes as a breakout above this level has the potential to introduce heavy buying pressure into the market and could ignite a substantial rally.