The #DXY setup ahead of #NFP

It’s only fitting ahead of the NFP tomorrow for the #DXY to have a setup against key resistance. The US Dollar is trading just shy of the 52 week high put in last month and we have developed a bullish wedge. The reason why this high (94.50) is so important, this is the long term weekly Fibonacci retracement of the post Covid highs to lows in 2020. A move above the 94.50 level would be a very bullish development. Support is at 94.00 (wedge) but where the US Dollar turns bearish is back below the 93.50 level. One thing we have to keep in mind going into NFP is that the FOMC laid out plans to taper bond purchases and wrap that up mid 2022. An employment miss shouldn’t deter the Fed near term, so the US Dollar could find buyers on any dip tomorrow.

Steve Voulgaridis