The NFP data showed that the U.S lost 33,000 jobs this month but many are speculating that it’s due to seasonal job changes along with the major hurricane interruptions. The dollar initially took this news well and even had a small jump off of it. Eventually when things settled out, the dollar spent the remaining of NY to pull back. This pull back is not only healthy but natural. The dollar has been rallying for weeks and it’s about time it took a pause. I had some early dollar long trades mid NY session which I will hold. I believe the dollar pullback will attract more buyers at better price and go for another leg up.
There were some majors news events scheduled for the afternoon for Draghi and Yellen to speak. A lot of traders were expecting some crazy movements but ultimately the two spokesmen said nothing to change any price action. I was afraid the dollar bulls were going to lose their battle but the bulls still look very juicy. I want to take some dollar long trades overnight but the momentum is still not there. I feel like the markets are gearing up for another dollar push, I may or may not decide to enter in some dollar long trades overnight regardless of the low momentum.
A lot of mixed messages within the dollar pairs today. It looked like the dollar was starting off strong at start ,then had a dip which eventually plateaued in the end. It’s pretty usual for Friday’s to be wonky, especially for the last trading day of the month. My usually strategy for days like these are to get my pips and run.
Today was a boring day to trade in the Forex market because the dollar bull rally had a small halt. It was interesting because although the dollar bulls had a break to breathe, it seemed like the dollar “pullback” was very forced. The bulls were definitely stubborn to keep the dollar going but was just out of momentum. This still shows bullishness in the dollar but also showed that there aren’t a lot of dollar buying compared to the beginning of the week. Excited to see how the dollar will end tomorrow, hopefully it can make new highs.
There was a whiplash action by the dollar after Yellen spoke about the U.S economy. She was worried about inflation, as usual, but also said the low inflation is only temporary. Yellen also reiterated about “gradual adjustments” but also said that the outlook looks uncertain. The dollar had a whiplash movement but ultimately ended on a good note. Dollar bulls still looks pretty good from here.
Had some attempts to long dollar to see if the momentum from yesterday will keep going. Unfortunately, yesterday’s post FOMC dollar buying came to a halt as dollar pairs hit their supports and resistances. Right now dollar’s pulling back but it’s too early to tell if it’s a reversal or pullback.
Here’s one example of dollar pairs reaching resistance. It’ll need heavy momentum for a nice break followed by a rally.
The dollar bulls kept up good work today and continued it’s rally. I had a couple long dollar scalps but volume wasn’t as good as I wanted it to be. It was a pretty slow Friday but next week should be good.
The dollar had a monetary pause followed by a pullback from it’s massive rally that started this week. The CPI data came out higher than expected but it looks like the market wants to wait for the payroll data tomorrow before committing to dollar longs. Today price action just looks like a healthy pullback, dollar still looks long.
It was also my first time trading USDMXN. I never really traded the pair because of the high margin and funky pip count, but I’m glad I got exposed to it today. My outlook on any pair is that, a chart is a chart. Anything is tradeable the same way, regardless of the subject.
Today’s dollar rally was something I anticipated on Friday. I regret not holding my EUR/USD shorts over the weekend, but I rarely do enjoy holding positions. USD/JPY gapped open continued to head up 100+ pips, EUR/USD went down 50+ pips, and USD/CHF went up 100+ pips as well. For the most part, I was hoping for a pullback to get back in but the dollar bulls were too strong to dip. It was just short dollar long scalps for today.