Today’s Non-Farm Payroll release did not disappoint as the US Economy was able to add 49,000 jobs and drop unemployment to 6.3%. Despite the positive result, the Dollar finds itself down -0.57% for the day.
Traders should not put too much emphasis on the Dollar’s abnormal response to the NFP as this sort of response has been common for much of the year. The important thing to note is that despite the sharp pullback, the uptrend is still intact on the higher time frame. Dollar shorts may come into question if price closes bearish below 91.00 on the daily time frame.
As for trade setups to take, US Oil seems to be one of great interest and reward. Crude had very little reaction to today’s job numbers and much of that is attributed to the fundamental backing that Oil has. Confidence in Covid-19 vaccinations and decreasing cases globally are fueling his commodity on its path higher. Price action traders will continue to hold this trade until their target is met.
Next week will be an important week for the Dollar. A break of 91.00 could reintroduce shorts for the Dollar and possible longs for the majors. GBPUSD seems eager to continue higher as price has failed to push lower several times this week. Traders will have more of an idea come Monday morning.
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- Read yesterday’s breakdown: CADJPY Longs Pending + US Oil Continues to Push
