US Dollar Talking Points:
- The US Dollar[1] finds itself between fairly well-defined support and resistance.
- The big driver for this week is Friday’s NFP[2] release, and there’s perhaps even more emphasis on employment data following last week’s FOMC[3] rate decision.
- The analysis contained in article relies on price action[4] and chart formations[5]. To learn more about price action or chart patterns, check out our DailyFX Education[6] section.
The US Dollar is coming into the week with some relative balance given the nearby support and resistance that are currently holding price. This is a different picture from last week, however, as the FOMC rate decision on Wednesday sent the USD[7] spiraling-lower until support played-out from a confluent area of Fibonacci retracements. That support inflection marked a fresh monthly low, and led to a bounce on Friday that caught resistance at a familiar area, taken from prior support around 92.20-92.26 in DXY.
To learn more about Fibonacci[8], check out DailyFX Education[9]
US Dollar Four-Hour Price Chart
Chart prepared by James Stanley[10]; USD, DXY on Tradingview[11]
Taking a step back on the chart, and last week’s bearish move broke through the bottom of a rising wedge formation. Such patters are often followed with the aim of bearish reversals, and this could produce a deeper downside run should the reversal continue. But the big sticking point as to whether or not that takes place is this week’s data with key emphasis on that NFP report.
To learn more about the rising wedge[12], check out DailyFX Education[13]
Employment is somewhat of the hot button at
