Huge US payrolls miss deflates dollar

Slobodan Drvenica Windsor Brokers

The dollar fell to ten-week low after huge US payrolls miss on Friday sparked fresh risk aversion as job growth well below forecasts boosted expectations that Fed would keep its ultra-low rates for a longer period.

The greenback was down nearly 1% in past two days as fresh bearish acceleration after multiple upside rejection under thickening daily cloud cracked key support at 90.37 (Apr 29 former low), clear break of which further weaken the structure on completion of failure swing pattern on daily chart.

Bears eye pivots at 90.16/00 (Fibo 76.4% of 89.15/93.45 rally / psychological) and could extend towards key points at 89.66/15 (Feb 25 spike low / 2021 low, posted on Jan 6, the lowest since Apr 2018).

Daily studies are in full bearish setup and support the action, as the index is on track for bearish weekly close that adds to negative signals.
Broken Fibo 61.8% of 89.15/93.45 (90.79) and falling 10 DMA (90.86) mark solid barriers which need to cap potential upticks and keep bears in play.

Res: 90.55; 90.79; 90.86; 91.02

Sup: 90.16; 90.00; 89.66; 89.15

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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