The USD Index (DXY) is off intraday highs, as the June edition of the Non-farm Payrolls report showed mixed data.
While the US public sector added 850K jobs in a figure that beat the market expectation and consensus of 583K and 725K, respectively, unemployment rose by a point from 5.8% to 5.9%. The mixed data means that the US labour market is not yet at the level where the Fed would even consider tapering, leading to the DXY being offered.
The index has now receded from the intraday high, as market participants register their disappointment with the report’s numbers. The USD index is now trading 0.01% lower.
USD Index Technical Outlook
The USD Index continues to challenge the 92.50 price mark, this time as a support level. The candlestick picture presently resembles that of a dark cloud cover. However, there are still some hours left for the markets to close for the week. If the candlestick picture stays the same, the USD Index would need a solid bearish outside day candle to close below 92.32 with a 3% penetration, to open the pathway for bears to target 92.00. Below this level, the next support comes in at 91.50, with 91.26 and 90.96 serving as a different target to the south.
On the flip side, a bounce at 92.32 or 92.50 could be the trigger that dismantles the previous outlook. If bulls seize on this to initiate a break above the 92.80 resistance, 93.17 becomes the next resistance in line. However, new 2021 highs can only be formed if price breaks the top of the evening star pattern of 30 March – 1 April at 93.43.