USD Index: Thoughts and Analysis pre-NFP Today's focus: USDX
Pattern – Range /Distribution?
Support – 105.50 - 106
Resistance – 106.75 - 107.05
Hi, and thanks for checking out today's update. Today, we are looking at the USDX on the daily chart.
Today, we have run over the USDX as price continues to trade range-bound after a choppy week and mixed influences. The FOMC failed to boost the USD after rates remained on hold, and comments pushed it lower on fears we could contnue to see further holds.
With this in mind, we have started to look at the possibility of distribution creeping in. Could we see a new move lower to test or break support? Could a miss in today's NFP data add to the USD woes and contnue to push seller momentum in the short term?
Be wary; this could also be a consolidation, and if we did see a new move through resistance, this could set up a new bullish continuation and cancel out any ideas of distribution.
US Employment data is due at 8:30 a.m. EST today.
Good trading.
