Our expectations: We expect NFP data to support the dollar and wait fora break below 1.2775, giving grounds for short positions with a stop of 1.2700.
Alternative Scenario: Data below expectations will be negative for USD and the formation will be spoiled.
Comment:
The pound fundamental is a negative this week before Britain's early elections due to investor uncertainty. This may lead to sterling sales.
With a price below 1.2775 we will have a break of horizontal and diagonal support.
If this breakthrough occurs, the price will also fall below 50SMA, which can lead to a sharp downward impulse.
Trader Nikolay Georgiev
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