The US dollar turned bearish earlier in the week when Fed Chairman Jerome Powell said the central bank would be more “patient” on future rate hikes.
Then this past Friday, the non-job payroll report stated the economy added 304,000 new jobs versus the 170,000 expected, in January. The US dollar gained ground immediately following the report, but it wasn't sustained
because the December payrolls figure was revised lower by -90K jobs, negating the January report.
In addition, the weekly jobless claims report showed a spike in applicants, I'm sure the US government shutdown had a lot to do with that.
So where is the US dollar headed, lets go to the charts to find out?
Monthly Chart (Curve Timeframe) - Monthly demand is at $101.50 and monthly supply is at $89.00.
Weekly Chart (Trend Timeframe) – the trend is up, but price ran into the weekly supply at $97.50 and is pulling back.
Daily Chart (Entry) – no entry at the moment, but the chart suggests price wants to move lower. If price breaks the pivot low at $95, look for a pull back before the next move leg lower.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.