In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDX for 3rd May 2024.
Key Takeaways
- Non-farm payrolls are key: Friday’s Nonfarm Payrolls report is expected to show slight slowdown in jobs market for April. However, analysts believe that its current stage will remain resilient with unemployment rate staying at low levels for mid-term. Consensus shows expected reading of 241,000 new jobs created with a slight increase in average hourly earnings of 0.3%.
- Dollar is weak: Fed Chair Jerome Powell commented that they need more evidence on inflationary cooling. Thus, if Nonfarm Payrolls shows slowdown, especially in its wages facet, Fed may be forced to cut interest rates within this year. This will open more room for the downside for the US dollar.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The indicator slump below the 50-midline, suggesting bearish momentum has overtaken the entire trend for short-term.
- Price Action: The pair completed closed below double top’s neckline, suggesting possibility of further downside extension. However, it is worth noting that the downside composed of several moving average lines, trendline and key support levels which may limit its bearish momentum.
4-hour Chart Analysis
- Stochastic Oscillator: The indicator fell below 50-midline which suggests further extension towards the downside.
- Moving average support: Following a close below the strong support, it is expected to extend its strong bearish momentum. However, it is worth noting that 200-MA line coincides with the current direction which may limit bears in the short to mid-term.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 105.60,
- Bullish Scenario: Bullish sentiment prevails above 105.60, first target 105.75, second target 105.89;
- Bearish Outlook: In a bearish scenario below 105.60, first target 105.20, second target 105.00.
Conclusion
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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
