The post-NFP sell-off in the U.S. Dollar Index encountered near-term key support at 1183.0/39 where the August low-day close converges on the 50% retracement of the advance off the 2016 low. While the greenback is likely to see some near-term recovery on the back of this decline, the focus remains weighted to the downside while below confluence resistance into 11902. We also discussed current setups we’ve been tracking in SB Trade Desk on AUDUSD, EURUSD, GBPUSD and EURGBP.
Keep in mind U.S. event risk is rather limited this week so we’ll be looking to broader market sentiment for guidance on our near-term directional bias with the RBA & RBNZ highlighting the economic docket. CAD crosses will also be in focus heading towards the latter part of the week with Canada employment figures on tap for Friday. Continue tracking these setups and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.
Check out SSI to see how retail crowds are positioned as well as open interest heading into the open of June trade.
Relevant Data Releases
Other Setups in Play:
- USD/JPY Eyes Technical Support Ahead of NFPs
- USDOLLAR: NFP Game Plan- Key Resistance 12000
- EUR/USD Bears Face-Off with the ECB- Key Support 1.1065
- USD/CAD Long Bias Vulnerable Sub-1.3120
- AUD/USD Rebound to Face Australian GDP- Resistance at the Yearly Open
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---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
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