The USD Tumbles into Support
Rowan Crosby • 1 min read
The USD short bull run has come to an end for the time being. The Greenback was beaten up in trade yesterday and it appears there is some work to do if it is to continue its breakout run.
A weaker than anticipated ISM figure really hurt the USD. While US President Trump is also talking up his meeting with China which will clearly have a trade focus.
At the same time, markets are waiting for tonight’s US employment report which is expected to show 193K new jobs created for the month.
A strong result from the ADP might be a good indicator of what we can expect. Any beat will see upward pressure on the USD.
The USD Outlook
The [[DXY]] tried to and crack the major resistance level at 97.00 Ultimately it failed and we have now sold off sharply into 96.20, which was prior resistance turned support.
Like I mentioned previously, a sharp run into a level can often fail.
I like to see coiling and consolidation just below, which to me is a sign of institutional buying. That can often lead to a big break.
Whereas a run up into a level quickly often gets met with selling. As that is the obvious place for large buyers to take profits.