DXY Potential Forecast | Post NFP | 13th March 2023
Fundamental Backdrop
1. NFP print came out 311k vs 224k forecasted.
2. Average hourly earnings m/m printed 0.2% compared to 0.3% forecasted.
3. Unemployment rate came out at 3.6% vs 3.4% forecasted.
4. Resulted in heavy bearish USD sentiments due to the wage inflation decreasing and unemployment rate increasing.
5. This shows the effects of rate hikes by the Fed and hence sentiments believe that the Fed now has lesser incentive to hike by 50bps in the upcoming FOMC.
6. All eyes will now be on CPI release this week and if CPI drops, we could see further downside pressure on the DXY.
Technical Confluences
1. Price reacted from a H4 resistance zone at 104.6 and has since went lower.
2. Very strong bearish pressure from Monday's asian open.
3. Price action has shifted market structure to bearish.
4. Would be appropriate to look for short positions on the USD.
Idea
Price can potentially come lower to tap into the key support level at 102.65.
NOT FINANCIAL ADVICE DISCLAIMER
The trading related ideas posted by OlympusLabs are for educational and informational purposes only and should not be considered as financial advice. Trading in financial markets involves a high degree of risk, and individuals should carefully consider their investment objectives, financial situation, and risk tolerance before making any trading decisions based on our ideas.
We are not a licensed financial advisor or professional, and the information we are providing is based on our personal experience and research. We make no guarantees or promises regarding the accuracy, completeness, or reliability of the information provided, and users should do their own research and analysis before making any trades.
Users should be aware that trading involves significant risk, and there is no guarantee of profit. Any trading strategy may result in losses, and individuals should be prepared to accept those risks.
OlympusLabs and its affiliates are not responsible for any losses or damages that may result from the use of our trading related ideas or the information provided on our platform. Users should seek the advice of a licensed financial advisor or professional if they have any doubts or concerns about their investment strategies.
1. NFP print came out 311k vs 224k forecasted.
2. Average hourly earnings m/m printed 0.2% compared to 0.3% forecasted.
3. Unemployment rate came out at 3.6% vs 3.4% forecasted.
4. Resulted in heavy bearish USD sentiments due to the wage inflation decreasing and unemployment rate increasing.
5. This shows the effects of rate hikes by the Fed and hence sentiments believe that the Fed now has lesser incentive to hike by 50bps in the upcoming FOMC.
6. All eyes will now be on CPI release this week and if CPI drops, we could see further downside pressure on the DXY.
Technical Confluences
1. Price reacted from a H4 resistance zone at 104.6 and has since went lower.
2. Very strong bearish pressure from Monday's asian open.
3. Price action has shifted market structure to bearish.
4. Would be appropriate to look for short positions on the USD.
Idea
Price can potentially come lower to tap into the key support level at 102.65.
NOT FINANCIAL ADVICE DISCLAIMER
The trading related ideas posted by OlympusLabs are for educational and informational purposes only and should not be considered as financial advice. Trading in financial markets involves a high degree of risk, and individuals should carefully consider their investment objectives, financial situation, and risk tolerance before making any trading decisions based on our ideas.
We are not a licensed financial advisor or professional, and the information we are providing is based on our personal experience and research. We make no guarantees or promises regarding the accuracy, completeness, or reliability of the information provided, and users should do their own research and analysis before making any trades.
Users should be aware that trading involves significant risk, and there is no guarantee of profit. Any trading strategy may result in losses, and individuals should be prepared to accept those risks.
OlympusLabs and its affiliates are not responsible for any losses or damages that may result from the use of our trading related ideas or the information provided on our platform. Users should seek the advice of a licensed financial advisor or professional if they have any doubts or concerns about their investment strategies.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.