U.S. Dollar Index Remains Strong Despite NFP

The dollar index remains strong despite the worse-than-expected Non-Farm Payrolls numbers announced last Friday. The dollar got sold off right after the announcement, but sellers were driven back by buyers who pushed the index to new short-term highs.

USDX H4 Chart

On the 4-hour chart, the price is breaking above the Kumo. The stochastic is overbought and signals that bulls need to be very cautious. The dollar index made an intraday correction on Friday that pushed the index towards 93.30 after the announcement of the NFP numbers. Buyers stepped in quickly and supported the index that then made a new high.

USDX Weekly Chart

On a weekly basis, the chart is very bullish. The stochastic is oversold and perging. Last week’s candle is a bullish reversal hammer pattern. The price has re-entered the Kumo. The price has also reached the 38% long-term Fibonacci support and bounced strongly. I believe we should expect more upside to come over the coming weeks.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.

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