The USD Index (DXY) was able to get some uplift from today’s private-sector jobs numbers in the US.
According to data released by the Automatic Data Processing (ADP) Research Institute on Wednesday, the US ADP Employment Change came in at 742K, which was better than last month’s upward revision of 565K. Despite being lower than the expected figure of 872K, the improvement over last month’s figures strengthened the US Dollar, allowing the DXY to add a marginal 0.04% to its value.
ADP’s Chief Economist Nela Richardson said that the report, which was the highest that private-sector employment has grown in 8 months, shows that the US labor market is in an upward growth trend.
Technical Outlook for USD Index.
The recovery move continues with price aiming for the 91.500 resistance level around the channel’s lower border. Price needs to break the 91.26 resistance to achieve this target. Above this level, the psychological resistance at 92.00 beckons, as does 92.500 and 92.803.
On the other hand, a rejection at the channel’s lower border/91.500 allows for a pullback move which retests the 91.261 price level. If bears can initiate a breakdown below this price support, 90.965 becomes the new target. Below this level, 90.503 and 90.228 become additional downside targets.