Dollar index in anticipation of NFP and unemployment report
During this morning’s Asian trading session, the dollar index continued to retreat to a new weekly low of 100.84
Dollar index chart analysis
During this morning’s Asian trading session, the dollar index continued to retreat to a new weekly low of 100.84. We are currently seeing a slight recovery to the 100.90 level. We need a further continuation above 101.00 to get back above the daily open price. Then, we need to hold on there to form a new position from which we would continue to the bullish side. At 101.20, we will meet the EMA 50 moving average and need its support for further recovery.
After that, the dollar index will have good momentum to continue towards 101.40 and the EMA 200 moving average to gain its support as well. Potential higher targets are 101.60 and 101.80 levels. The weekly open price is at 101.73.
Today, we are also under bearish pressure and expect a further pullback
For a bearish option, the dollar index would have to continue its retreat below the 100.80 level. With that step, we move to a new weekly low and confirm the continuation to the bearish side. Potential lower targets are 100.80 and 100.60 levels. Last week’s low is also important at 100.50.
Today, in the US session, very important economic news awaits us. The most important are Nonfarm Payrolls, followed by the Unemployment Rate and Average Hourly Earnings. These data will be published half an hour after the opening of the US session. The forecast on the NFP report is more optimistic than the August data. This news will have a big impact on the dollar index. From the data on the Unemployment Rate, we expect to see a decrease from 4.3% to 4.2%.
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