The U.S. Dollar is trading slightly lower against a basket of currencies late Friday, but the best way to describe the tone of the day is indecisive. This assessment is being confirmed by the inside move. A mixed reaction to the U.S. Non-Farm payrolls report is the catalyst behind the price action.
At 19:28 GMT, September U.S. Dollar Index futures are trading 98.360, down 0.0022 or -0.02%.
The dollar was under pressure around 12:30 GMT when a mixed report on the U.S. jobs market in August reinforced the view of a slowing economic expansion and the possibility of more interest rate cuts from the Federal Reserve.
The greenback began to claw back most of its losses after Federal Reserve Chairman Jerome Powell said, “We’re not forecasting or expecting a recession,” he said. “The most likely outlook is still moderate growth, a strong labor market and inflation continuing to move back up.”
Against the major currencies late in the session, the U.S. Dollar is mixed. The Euro is trading flat to lower. The British Pound is lower, but the Canadian Dollar is higher. The safe-haven Japanese Yen and Swiss Franc are off their highs.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 99.330 will signal a resumption of the uptrend after a three day setback. A move through 97.370 will change the main trend to down.
The short-term range is 97.370 to 99.330. Its retracement zone at 98.350 to 98.120 is acting like support.
The main range is 96.980. Its retracement zone at 98.160 to 97.880 stopped the selling on Thursday at 98.035.
The two zones combine to form a key support area at 98.160 to 98.120.
Gann Angle Support and Resistance
Late in the session on Friday, resistance is being provided by an uptrending Gann angle at 98.495 and a downtrending Gann angle at 98.580. Prices are likely to remain rangebound into the close as long as the index remains under these angles.
On the downside, taking out 98.12 to 98.16 will be a signal of weakness. A failure at yesterday low at 98.035 could trigger a further decline into an uptrending Gann angle at 97.935.
This article was originally posted on FX Empire
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