USD in a correction ahead of US NFP data

Gregor Horvat Wavetraders

The USD is reversing the recent gains after US PMI and Unemployment claims data yesterday, and also on "buy the rumor, sell the news" impact after US Senate voted to pass the bill to suspend the debt limit. Commenting on this development. Stocks found some support on this data, which is a reason for dollar sell-off. However, this dollar turn has been technically expected, as we talked about the upcoming correction on DXY when we saw wave 3 at resistance. So far, that's very sharp sell-off so even if its a correction, we will probably see more weakness since we know that fro a correction we need A-B-C substructure. For now, that's till only wave A now on hourly time frame.

However the US NFP numbers are going to be released today, which can shake the markets a bit.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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