Yesterday, the USDOLLAR pushed into its bullish channel between its upper blue and red bands (blue rectangle). The RSI also crossed into its bullish area above 50 (green rectangle). The greenback rallied on the strong ADP data, which pushed the US 2-year yields up around 11bps.
A strong labour market is a cause for a hawkish Fed as the central bank is worried about wage inflation. Today's non-form employment change (NFP) release will be watched closely. A beat in consensus will probably be dollar supportive.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.