US dollar clings onto its gains while waiting for NFP.
“Market participants waits for the release of Nonfarm Payrolls to gauge greenback’s mid-term trend.”
US dollar cling onto its gains near three-months high while investors shifts their focus on US Nonfarm Payrolls report. Prior, the greenback received higher demand after Federal Reserve Chair Jerome Powell commented on potentially faster interest rate hikes to curb high inflation in the US. He noted that Fed will need to put more efforts in response to recent strong data which came in unexpectedly. For the time being, Nonfarm Payrolls report due coming Friday will provide more insight into US economic conditions and foreshadows possible actions that might be taken by the Fed in the future.
Technical Analysis
DXY, Daily: Dollar index breaks free from previous downward channel and strong resistance near 104.80. While overall trend is biased towards the upside, we may see limited appreciation in price as it approaches the 200-MA line.
Resistance level: 106.90, 109.95
Support level: 104.80, 102.15
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