In today’s live trading session, we completed technical and fundamental analysis for the US Dollar to predict tomorrow’s Non-Farm Payroll (NFP) result and reaction.
Many traders and investors alike are waiting for tomorrow’s NFP report released by the United States. The current forecasts have unemployment dropping to 10.5% and the US economy adding 1.55 million jobs. But, how accurate are these predictions? Forecasts have undervalued both the unemployment rate and jobs added for the past 3 months. This could mean tomorrow’s result is far better than expected. In addition to this, the US continues to progress in its reopening plans. Therefore, as far as fundamentals are concerned, we are bullish on the US Dollar for tomorrow.
As far as technical analysis goes, the US Dollar has a mixed bias. The long term downtrend is still valid and can continue to play out any minute now. The smaller timeframes however suggest that the index can revisit 93 to 94. This is due to the current support at 92.50 being respected. If the price continues to consolidate/reject this level, we could see an impulse move to the upside. We believe this upside move would coincide with tomorrow’s NFP release.
In conclusion, we have a bullish prediction for tomorrow’s NFP release. It is important to note that this is just speculation, and as traders, that’s what we specialize in. We can very well have a bearish reaction tomorrow, as fundamentals are much harder to speculate. That is why for the time being, we are electing to find setups for the minors to trade instead. As always, be safe and trade responsibly!
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