FX Trades Ahead Of NFP?
USD gains strength ahead of the NFP data. If you are a trader who avoids volatility and has strict money management rules you will probably stay without a position in the Friday’s afternoon. If you love a bit of excitement in your trading, we have three nice technical situations, all with USD.
First we will 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 will be the closest resistance and technically we should bounce from that and aim south.
Next one is Cable, which is suffering after the worse data from UK. Situation stays positive though. We are above 3 important supports which will cross in one point – around the 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.
USD/MXN is testing an important long-term resistance (18.32) for the second time. So far, 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 was no data today, we would get a strong sell signal.