U.S. dollar is largely trading higher Intraday despite disappointing initial jobless claims and trade balance figures. Investors seem to be nervous ahead of US Nonfarm payrolls and unemployment report. Major pairs such as EURUSD, GBPUSD and AUDUSD are trading lower since yesterday’s European session.
EURUSD was the worst performer, as a series of events including ECB press conference affected the buyer’s sentiment. Arguably, the most important economic release is lined up today. US Department of Labor will publish March’s Nonfarm payrolls and unemployment rate, which could act a major catalyst for the US dollar moving forward. According to forecasts, Nonfarm payrolls figure is expected to gain 200K jobs in March, and unemployment rate to fall 0.1% from 6.7% to 6.6%.
U.S. dollar Index: Key break ahead of important data
U.S. dollar index broke an important resistance and moved higher, as bullish pennant formed on the 4 hour timeframe gave away for further upside acceleration. There was a bullish pennant formed, which was breached yesterday post important economic releases. The European Central Bank (ECB) rate decision and press conference made the difference. At the press conference, ECB President Mario Draghi remarks ignited bearish move in the Euro. His dovish comments on possible QE and escalated Euro currency created bearish pressure, as EURUSD pair traded lower and even tested 1.3700 support level.
USDCHF: Lacking follow through?
USDCHF pair is also trading higher, but looks like the pair is lacking follow through.There was flag formed on the 4 hour timeframe, which was taken out during yesterday’s US session.However, buyers struggled around 50% Fibonacci retracement level of the last down move from 0.9155 high to recent 0.8698 low. Flag resistance might act as a support.
RSI is at extreme levels, which suggest that the pair might retrace some of the recent gains in short term. Current price is 0.8918, resistance lies at 0.8928 (50.0% Fib), 0.8980 (61.8% Fib) and 0.9000.
Support seen around 0.8900 (Flag support), 0.8850 (4H 50 SMA) and 0.8830 (4H 200 SMA).
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