The US dollar keeps firm tone and hit three-month high in early Thursday, following 2.44% monthly rally in June, mainly driven by hawkish shift in Fed’s rate outlook. The dollar index looks set for further advance after completion of shallow correction (92.38/91.50).
Bulls pressure pivotal Fibo barrier at 92.52 (76.4% of 93.45/89.50 fall) and 92.58 (base of thick weekly cloud) break of which would open way towards 2021 high at 93.45 (Mar 31).
Traders however remain cautious as massive weekly cloud and overbought conditions on both, daily and weekly chart, may produce strong headwinds and also focus on tomorrow’s US labor data which are expected to be a key driver and could push the greenback in either direction, depending on the outcome.
Forecasts show 700K new jobs added in June, compared to 559K increase previous month.
Upbeat June figures would point to accelerating recovery in the US labor market that could be supportive for dollar.
On the other side, weaker that expected numbers would signal that labor market growth continues to struggle that would be negative for dollar.
Res: 92.52, 92.58, 93.00, 93.45.
Sup: 92.35, 91.94, 91.67, 91.47.
