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Dollar Index: Dollar Index Keeps Firm Tone ahead of Key US Jobs Data

The dollar index is holding within a narrow consolidation in early Friday, following strong rally in past two days (up almost 2%) which retraced 50% of 114.72/109.95 pullback, adding to signals that corrective phase from new 20-year high might be over.

Daily studies returned to bullish setup and a bear-trap under 110.81 (Fibo 38.2% of 104.49/114.73) contribute to positive near-term outlook, with today’s close above 112.33 pivot (50% retracement of 114.72/109.95 / daily Tenkan-sen) to boost bullish signals.

Markets focus on US labor data as a key event today, with solid numbers to add to positive dollar’s sentiment, strongly underpinned by signals that the Fed remains on track for aggressive policy tightening.

US unemployment is expected to remain unchanged at 3.7% in September (close to the lowest since 2019) while non-farm payrolls are forecasted at 250K, down from August’s 315K, but seen positive while holding above 200K.

Only a shock from significantly weaker than expected US labor figures would derail dollar bulls.

Res: 112.33; 112.66; 112.90; 113.59.
Sup: 111.94; 111.77; 111.40; 111.18.

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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