US DOLLAR OUTLOOK: USD/CAD PRICE VOLATILITY IN FOCUS WITH JOBS DATA ON DECKThe US Greenback was pushed -0.4% decrease on Thursday as measured by t
US DOLLAR OUTLOOK: USD/CAD PRICE VOLATILITY IN FOCUS WITH JOBS DATA ON DECK
- The US Greenback was pushed -0.4% decrease on Thursday as measured by the broader DXY Index
- US Greenback promoting was most distinguished towards its Euro, Aussie, and Canadian Greenback friends
- USD/CAD worth motion appears to be like ripe for extra volatility as a consequence of occasion danger posed by jobs knowledge
US Greenback bears flexed their muscle mass throughout Thursday’s buying and selling session and drove the Dollar all the way down to weekly lows. The broader DXY Index dropped -0.4% on the day after failing to surmount the 91.40-price degree. I highlighted this huge space of technical resistance in my US Greenback forecast printed earlier within the week. US Greenback promoting strain was primarily fueled by EUR/USD power and USD/CAD weak point. AUD/USD had a stable session as properly with a achieve of 34-pips.
The US Greenback turned decrease regardless of one other spherical of feedback from Dallas Fed President Robert Kaplan who reiterated how he thinks the Federal Reserve ought to begin tapering discussions sooner relatively than later. Markets probably ignored these headlines seeing that Kaplan is thought to be comparatively hawkish, and extra importantly, a non-voter on Fed coverage this yr.
DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (24 DEC 2020 TO 06 MAY 2021)
Chart by @RichDvorakFX created utilizing TradingView
From a technical perspective, the negatively-sloped 20-day easy shifting common appears to be serving to steer the US Greenback Index decrease. That stated, the most recent stretch of draw back stalled out earlier than making new weekly lows. US Greenback bulls may attempt to wrestle again management of route, however technical resistance across the 91.40-price degree stays a frightening impediment. Eclipsing this technical barrier, nevertheless, may open up the door to a pointy transfer towards the 92.00-handle. Although it seems extra probably that the broader DXY Index may be headed for technical assist posed by the 90.50-price degree, which is underpinned by a confluence of April’s swing low, an ascending trendline in addition to the underside Bollinger Band.
USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
Looking forward to Friday’s buying and selling session, we see that the US Greenback may very well be in retailer for some extra heightened market exercise. That is judging by in a single day implied volatility readings for main forex pairs, that are usually above their respective 20-day averages. USD/CAD worth motion appears to be like ripe for volatility particularly. USD/CAD in a single day implied volatility of 9.0% compares to its 20-day common studying of 6.3% and ranks within the prime 92nd percentile of measurements taken over the past 12-months. Taking a fast gander on the DailyFX Financial Calendar exhibits that the US Greenback and Canadian Greenback each face high-impact occasion danger stemming from the discharge of month-to-month jobs knowledge. This basic catalyst due Friday, 07 Could at 13:30 GMT will probably be entrance and heart for USD/CAD merchants.
Hold Studying – Canadian Greenback Forecast: USD/CAD Plunge Marks Fifth Week; NFPs on Faucet
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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