At 15:15 we expect new jobs according to ADP. The research institute believes that the strong pace of growth in April will remain. The March report showed better-than-expected data: 241K vs. 235K expected. It seems that this and the Fed's intense intentions have managed to raise USD from the bottom. Today's data as well as the official on Friday will be key to the US dollar as the currency is at key levels of resistance to most major currencies. If we take a look at the Dollar Index, we will see that the price is up to 200 Index Periods, as well as the downward trend trend line starting in 2017.
Consensus forecast among Wall Street analysts is for 197.78K new jobs, according to ADP. The impression is that higher ranking analysts are of the opinion that ADP data will be understated. If this really does so, the USD will not receive the necessary upward breakdown support, and it is very likely that we will see a short-term downward correction. Let's take a look at the Dollar index - D1.
The Dollar Index is located in a resistance zone formed by a major diagonal of resistance, 200SMA and a horizontal resistance level. The indicators are also supported in the area of resistance. Sequential counts 9 at the top and forms a down arrow - the probability of a turn is high. DeMarker also points down from an over-purchase zone indicating a drop. Better data on new jobs would bring dollars above resistance levels, and worse would confirm technical analysis, and the decline would remain the more likely scenario.
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