Goes down on the mixed United States data and resumes the yesterday’s bearish candle, right now is approaching a dynamic support, but seems unstoppable again as the dollar index drops aggressively. USDX extends the sell-off, is trading at 95.80 level, much below the 96.00 psychological level and is very close to reach a dynamic support, only a rejection from this level could send the index higher again.
Everything goes like I said in the last days, the dollar index didn’t have enough energy to climb much higher, needs an accumulation movement to capture more directional energy before will start another upside journey. We may have a reversal signal on the USDX if will stay above the 95.45 previous low, the behavior will change if will start to make higher lows.
The greenback remains under selling pressure as the US data have come in mixed, the ADP Non-Farm Employment Change was reported at 158K jobs, much below the 184K estimate and versus the 230K in the former reading period, while the Unemployment Claims increased to 248K in the previous week, even if the traders have expected to see a drop to 243K jobs. Trade Balance increased a little, from -47.6B to -46.5B, but failed to reach the -46.3B estimate. USD received support from the ISM Non-Manufacturing PMI, which increased from 56.9 points to 57.4 points, beating the 56.5 estimate, while the Final Services PMI jumped from 53.0 to 54.2 points, signalling that the expansion continues.
Price drops after the yesterday’s bearish candle, is very close to hit the lower median line (lml) of the minor descending pitchfork. Could decrease further after the false breakout above the 0.9634 static resistance, probably will move down after the failure to retest the internal sliding line (descending dotted line) and the sliding parallel line (SL). We have a major static support at the 0.9498 level, price could approach this level if the USDX drops deeper in the upcoming days.I want to remind you that the rate moves sideways on the long term, the range support is at the 0.9440 level, so we may have a bounce back very soon, because I don’t believe that will drop further on the medium term.