DXY and EURUD shows signals of reversal after Friday NFP
The US Dollar Index (DXY) found support on the 50% Fibonacci level and the important 102 level in the Weekly chart. The strong Non-Farm Payrolls (NFP) report on Friday, which saw the addition of more than 500,000 jobs, confirms that a bounce is taking place and indicates that market participants are now pricing in the probability of no rate cuts in the second quarter of 2023.
On the Daily chart, technical signals suggest that the US Dollar Index (DXY) may be ready to reverse its current trend. This potential reversal could be confirmed if the price breaks above the 103.5 level, which can also be seen on the 4-hour chart. A successful breakout could then take the DXY to the next confluence of technical indicators, namely the 100/200 Moving Averages and the old support/resistance level of 106.
The EUR/USD currency pair, the other side of the US Dollar Index (DXY), is showing the same pattern in reverse. This is also confirmed by the 1-week chart, which showed the 100-day Moving Average (MA) acting as a resistance level.
On the Daily chart, technical signals suggest that the US Dollar Index (DXY) may be ready to reverse its current trend. This potential reversal could be confirmed if the price breaks above the 103.5 level, which can also be seen on the 4-hour chart. A successful breakout could then take the DXY to the next confluence of technical indicators, namely the 100/200 Moving Averages and the old support/resistance level of 106.
The EUR/USD currency pair, the other side of the US Dollar Index (DXY), is showing the same pattern in reverse. This is also confirmed by the 1-week chart, which showed the 100-day Moving Average (MA) acting as a resistance level.
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