Further US Dollar upside appeared fairly promising yesterday, but selling pressure has pushed the Dollar back below 91.00. As a result, the current daily candle is a shooting star, suggesting further downside for the Dollar.
The US Dollar Index (DXY) has found itself down -0.32% the day before the ADP job report. Tomorrow’s forecast for the ADP suggests the addition of 203,000 jobs. This report neglects jobs in the government and farming sector. A bearish result could push the Dollar down to the 90.00 psychological level.
With the Dollar pushing lower, both EURUSD and GBPUSD are providing potential intraday setups. Last week, EURUSD had broken out of its range and attempted to move lower. This week, the price has closed bullish back within the range, which should take the price to the range high. The same price action can be seen on GBPUSD to a lesser degree.
To start the week, price action traders were looking to enter long for USDJPY. The uptrend on the daily still appears intact, so this setup may be explored if unemployment data this week comes out positive.
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- Read yesterday’s breakdown: Dollar Recovery Likely + USDJPY Swing Long
