Market Outlook
Will greenback’s rebound lasts? - Zeal Capital Market

Will greenback’s rebound lasts?

07-06-2022 03:32

“Higher demand for greenback after Nonfarm Payrolls report.”

Market bulls regained their control over the greenback as investors react positively towards latest employment data from the US. According to BLS, US economy has added 390,000 new jobs last month, exceeding consensus forecast of 325,000. However, the data is significantly lower when compared to April’s reading, which received upward revision to 436,000. While jobs creation shows a possible downtrend, it is still hovering at a feasible level that could induce higher inflation. Thereafter, investors speculate for more hawkishness from Federal Reserve that may be seen in the upcoming policy meeting.

Quick recap on USDCHF

Overall structure of USDCHF remains bullish despite recent setback from previous high.

USDCHF Weekly Technical Analysis

Will greenback’s rebound lasts? - Zeal Capital Market

USDCHF recovered some losses as it established a rebound near 0.9950.

USDCHF Daily Technical Analysis

Will greenback’s rebound lasts? - Zeal Capital Market

In the daily perspective, bearish momentum continues to diminish as the pair test around 0.9717.

Trading Idea

Will greenback’s rebound lasts? - Zeal Capital Market

ORDER: BUY STOP

ENTRY: 0.9770

STOP LOSS: 0.9690

Target 1: 0.9870

Target 2: 1.0000

ZFX Analyst’s Comment

In summary, the pair may receive substantial upside momentum as bulls tries to take over the upcoming resistance level. Upon successive closure, it would open more room for further bullishness.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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