USD gains strength ahead of the NFP data. If you are a trader who wants to avoid volatility and has strict money management rules, you should probably not open a position this Friday afternoon. If you love a bit of excitement in your trading, we have three nice technical situations, all with USD.
Let’s start with the Dollar Index, which is in a downtrend. That was especially visible yesterday when the price ended the bullish correction and broke the lower line of the wedge along with the support on the 96.05. Currently, that is the closest resistance and technically we should bounce from that and aim south.
Next up is the Cable, which is suffering after disappointing data from UK. The situation remains positive, though. We are above 3 important supports which will cross at one point - around 1.286. That is a lower line of the current correction, upper line of the recent correction and the 38,3% Fibo. Potentially a very good place to start an upswing.
USDMXN is testing an important long-term resistance (18.32) for the second time. So far, the test looks good for sellers as the last two daily candles and the current one have long heads and bodies on the bottom. This one from yesterday is even a classic shooting star. It is all up to NFP but if there were no data today, we would get a strong sell signal.