Overnight, the DXY continued its retrace to the downside after having tested the 105.88 price level, following the hawkish comments from Fed Chair Powell (he indicated that the Federal Reserve was ready to speed up interest rate hikes if the data warranted).
The DXY rebounded briefly early in the trading session today with the price testing the near-term support turned resistance level of 105.36. However, the DXY is likely to consolidate along the current level with some downside potential.
Watch out for higher volatility on the DXY today with the NFP due to be released. The previous release was 517k, with current forecast at 224k. A stronger-than-expected release could see the DXY retest the 105.88 resistance level again. Alternatively, if the DXY breaks below the 105 support level due to bad news from the NFP, the next key support level is at 104.10
The DXY rebounded briefly early in the trading session today with the price testing the near-term support turned resistance level of 105.36. However, the DXY is likely to consolidate along the current level with some downside potential.
Watch out for higher volatility on the DXY today with the NFP due to be released. The previous release was 517k, with current forecast at 224k. A stronger-than-expected release could see the DXY retest the 105.88 resistance level again. Alternatively, if the DXY breaks below the 105 support level due to bad news from the NFP, the next key support level is at 104.10
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