The US dollar has edged upward, but we will be waiting for non farm payrolls data for introspection on US labor market conditions before it will make a more definitive move. We anticipated ranging between 95.85 and 96.65, which appears to be exactly what we are seeing. This rally does appear weak and we are seeing several red triangles on the KRI suggesting we are facing headwinds. The DXY won't make a definitive move until after the NFP data comes out. If the data is not favorable, watch for support at 95.85, but take note of the vacuum zone down to 95.26. If the data is favorable, then we should make a run for 96.65, with 97.03 being a max upper bound.
Comment:
The US dollar rejects 96.44, the first of a cluster of levels in this value area. It is one of the only assets that didn't see a tremendous move today, and is currently in the vacuum zone between 95.82 and 96.24, where it is likely to close out the day.
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