USD Squeezing with Positive ADP Jobs Data (USDX, USD/JPY, EUR/USD)

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NFP Reactions: EUR/USD, GBP/USD, NZD/USD
NFP Reactions: EUR/USD, GBP/USD, NZD/USD

Today, traders will probably be looking forward to tomorrow’s US Non-Farm Payroll data for June. Today’s ADP Non-Farm Employment Change came in at 281K, which was way above forecasts around 207K, and eclipsed the 179K from May. This sets up NFP reading that should be in-line or better than the 214K forecast. The market seems to be setting up for a USD-reversal.

The USDX shows the greenback in a short squeeze after the ADP jobs data. There will be resistance from June’s falling trendline, and the NFP tomorrow will help the market decide whether to respect that trendline and keep a bearish trend going, or to pop above it to introduce a bullish continuation of May’s uptrend. You can see the same fight in the USD/JPY and EUR/USD as these crosses look back toward recent trendlines.

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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.