Market Offers the USDollar - Looking to Sell at Resistance
A huge miss today in Non-Farm Payrolls. The USDollar theme has moved back to the soft-side. The odds are now heavily against the Fed raising interest rates this month, and as such, the market has offered the dollar.
Trading Bias: Looking for opportunities to sell the dollar from a key resistance level unless we get big news along with a big shift in trader sentiment. Even with today's move down, retail Forex traders are still holding net long USDollar open positions. This suggests that further losses are more likely than sustained bullish price reversals. Sellers pushed the USDollar Index down to the 11776 handle today, a long-term .386 Fib level, which is also confluent with a key price action level. Buyers have come back in, however, but only holding price just above support as of 11:25 AM ET (6/3), at 11857.
Trading Bias: Looking for opportunities to sell the dollar from a key resistance level unless we get big news along with a big shift in trader sentiment. Even with today's move down, retail Forex traders are still holding net long USDollar open positions. This suggests that further losses are more likely than sustained bullish price reversals. Sellers pushed the USDollar Index down to the 11776 handle today, a long-term .386 Fib level, which is also confluent with a key price action level. Buyers have come back in, however, but only holding price just above support as of 11:25 AM ET (6/3), at 11857.