Although, the data from the NFP today were better than expected with 211k VS. 185k, the USD continue to fall and the DXY does remain below horizontal and diagonal supports. It is possible that the greenback will continue to trade lower next week as well. The FED members also reaffirmed their views that more rate hikes are coming and the chances of the June hike reached 90% and continue to discuss the reduction of the FED's balance sheet. All these dollar positive news, was not able to get the USD to go higher - negative signal.
Although, the USD is weak we continue to be long USD/JPY, and with high attention against the other currencies. After the elections in France we will analyze the Euro and we will look for clear signals for trades. Win for Macron will likely be positive for the Euro and win for Le Pen will be negative for the currency.
With the USD being weak, possibly the indices will continue to rise, which will support the riskier currencies like the AUD and NZD and will put a negative pressure on the JPY and Gold.
Trader Senan Fuchedzhiev
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