Whatever anyone may say, we know that vertical climbs do not extend indefinitely. The coming week sees two important pieces of US Data - NAPM on Monday and the April Payroll numbers later in the week. Given the record of strong economic figures over the last few months from the USA, undoubtedly these figures will be strong too. However, this is no guarantee that this will be unambiguously positive for the Asset Markets. If the market gets jittery and wants to rake in profits, it will as easily use the strong numbers as a reason to Sell as it used similar strong economic numbers as a reason to Buy until now.
Market sentiment is a fickle thing.
As outlined above, we have some reason to feel unsure about the support the Asset Market will be able to provide to the Dollar in the coming week. As for the Kosovo conflict, we will have to see how the market will take the gesture of releasing the 3 US Prisoners of War. Rejoicing is potentially dangerous for the Dollar, which is perceived to be benefiting from the war. As you know, we rely on Technical Analysis. Currently, the Charts are say that the Dollar is overbought against the Euro and the Swiss Franc.