Dollar eases despite upbeat US jobs data, dips to offer better buying opportunities

Slobodan Drvenica Windsor Brokers

The US dollar dipped against the basket of major currencies despite better than expected US labor data in June.

Larger uptrend remains intact, with current dip seen as positioning for fresh push higher, as the labor report has less impact than the main factor - hawkish tone from US Federal Reserve which sent initial signals about earlier than expected policy tightening - that lifted the greenback recently.

Fresh weakness also comes as a result of overbought daily studies, with corrective dips to be ideally contained by 92.00 support zone(10DMA / broken Fibo 61.8% of 93.45/89.50 descend.

Strong rally in June (the index advanced 2.4% last month) that left large bullish monthly candle, also underpins the action, keeping bulls firmly in play for fresh attack at 93.45 (2021 high).

Only drop below pivotal 91.50 support zone (higher base reinforced by 200DMA) would put bulls on hold for deeper correction.

Res: 92.75; 93.00; 93.45; 94.00

Sup: 92.25; 92.01; 91.67; 91.47

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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