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.