During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
How Can NFP Release Affect the USD?
2023-03-09 • Updated
In February, the NFP (Non-Farm Payrolls) delivered a great shock, surpassing the forecast by over 400%. The forecast for this month's NFP is currently tied at half of the actual figure from last month's release, which means we can expect the US Dollar to get considerably lower. Despite this sentiment, it is imperative to vet the fundamental sentiment from a technical point of view.
DXY - US DOLLAR
DXY can dip lower after breaking above the previous high, as seen above. The retracement is clearly in line with my previous analysis. I expect the Dollar to drop toward either of the two demand zones highlighted in the chart above.
Analysts’ Expectations:
Direction: Bearish
Target: 104.5
Invalidation: 106.0
EURUSD
Generally speaking, a weaker dollar usually has a bullish consequence on the EURUSD and most major currency pairs. Based on this, I expect to see EURUSD climb into the highlighted supply zone before any possible drop occurs.
Analysts’ Expectations:
Direction: Bullish
Target: 1.0640
Invalidation: 1.0549
GBPUSD
After the bearish break below the previous low, we see that price has created a rally-base-drop supply zone that needs to be mitigated. The supply zone also coincides with 88% of the Fibonacci retracement. Moreover, the arrangement of the moving averages suggests that the price would need to reach the marked zone to find a good enough cause for a bearish continuation.
Analysts’ Expectations:
Direction: Bullish
Target: 1.20100
Invalidation: 1.18310
AUDUSD
AUDUSD has the clearest picture of the bearish break below the previous low. We have also seen a double-bottom pattern at the most recent low, indicating a high likelihood that the price will retrace to the 0.6700 price region to find a reliable supply zone. After that, we may see a continuation of the bearish trend.
Analysts’ Expectations:
Direction: Bullish
Target: 0.67000
Invalidation: 0.65600
If you would like to trade the NFP with a professional FBS analyst, don't forget to join our live trading broadcast of the NFP release on our YouTube channel.
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
Similar
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Latest news
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...