This morning’s ADP job numbers came out worse than expected at 123,000 jobs lost in comparison to the addition of 60,000 jobs. But, that did not stop the US Dollar from making a brief rally to the upside.
After the initial rally, the DXY was able to push down again as the rally was only able to create a lower higher and nothing more. As a result, many of the pending long trades for the majors have become active. Price action traders have entered long for AUDUSD and NZDUSD after the DXY printed a shooting star candle on the 1hr time frame. These pairs should continue to move higher as Dollar bearishness continues.
Bitcoin has emerged back to the all-time high after last week’s brief sell-off. Price has spent the last day or so consolidating below 36,000. Traders are waiting for a strong bullish closure above this level to take this cryptocurrency up to 40,000. This move should align well with longs for the majors and continued shorts for the Dollar.
Although this morning’s reaction to the bearish job numbers was unusual, it’s not uncommon. Sometimes the markets may have an initial reaction to the news that is opposite to what most would expect. However, over time the fundamental news, if significant, should take over. That is what was observed for the Dollar today. This Friday’s NFP release may also have a similar reaction.
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