US Dollar losing altitude, tests 98.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The US Dollar Index, which tracks the greenback vs. its main rivals, has retreated from session highs near 98.50 and is now challenging the 98.00 handle.

    US Dollar weaker despite Payrolls

    The greenback keeps the upbeat tone today, recovering ground after yesterday’s violent pullback in response to the ECB move. However, the USD-recovery stalled just ahead of 98.50 area in spite of the better-than-expected Non-farm Payrolls during November, which keep supporting the case for a Fed’s lift-off this month.

    Recall that the US economy has created 211K jobs during last month vs. 200K expected and nearly 300K during October (revised from 271K), while the unemployment rate has remained unchanged at 5.0%. In addition, Average Hourly Earnings gained 0.2% MoM, in line with consensus.

    Further releases saw the trade deficit widening to $43.89 billion during October vs. September’s $42.46 billion.

    US Dollar significant levels

    As of writing the US Dollar Index is gaining 0.17% at 97.98 and a surpass of 98.99 (23.6% Fibo of 93.84-100.58) would aim for 100.00 (psychological handle) and finally 100.58 (high Dec.3). On the flip side, the immediate support aligns at 97.60 (low post-ECB Dec.3) followed by 97.36 (55-day sma) and finally 95.11 (4-month uptrend).
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