USD Paring Gains to Start the Week

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USD Paring Gains to Start the Week

The US Dollar was strong after last week’s hot NFP jobs report, which showed 288K jobs added in June, and the unemployment rate dipping from 6.3% to 6.1%. This rally could be short-lived. Let’s take a look at USD/JPY, EUR/USD and the USD Index.

The USD/JPY is retreating from last week’s high of 102.25. After breaking below 102, it is now in a key support area that should hold if the USD/JPY is to remain bullish in the very short-term, with June’s high of 102.80 in sight. The EUR/USD has already been bearish on the back of a soft euro. The strong NFP data helped the USD and pulled the pair below 1.36 last week, only to find support around 1.3575. It is starting this week at the crossroad. The US Dollar Index reflects USD-pairs trading at the crossroads. The index broke June’s falling trendline, but is consolidating awaiting confirmation of the breakout, or invalidation, which would bring the bearish correction back in play.

To contact the reporter of this story, email Fan Yang at fan@forexminute.com
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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.