US Dollar Fails to Break Resistance Following Employment Figures

by Justin Bennett  · 

January 5, 2024

by Justin Bennett  · 

January 5, 2024

by Justin Bennett  · 

January 5, 2024

The US Dollar Index (DXY) failed at 102.60 resistance today following US employment figures.

But what does that mean for the dollar next week?

Today’s analysis has the answers, including key levels to watch next week and both bullish and bearish scenarios depending on the outcome.

Watch the video below and scroll down for the annotated charts and analysis.

The US Dollar Index, also known as the DXY or Dixie, remains range-bound between 102.00 support and 102.60 resistance.

I’ve discussed both levels in previous videos.

We saw an initial knee-jerk reaction from dollar bulls, sending the DXY 0.4% higher following today’s non-farm payroll (NFP) numbers.

However, that quickly faded with the DXY trading down on the day by 0.43%.

All eyes are now on the 101.80 support that the dollar index reclaimed earlier this week.

That’s currently a must-hold for dollar bulls, as a sustained break back below on the higher time frames would suggest imminent dollar weakness.

Despite today’s bearish-looking candle, it’s important to not get ahead of ourselves, especially on NFP days.

There’s still plenty of time left in today’s session, and the DXY remains above the 102.00 support region.

As long as that’s the case, the bullish narrative for the dollar still has a fighting chance.

That said, it’s going to take a daily close (preferably two) above 102.60 next week to confirm further upside toward 103.50 and possibly 104.20.

Alternatively, a sustained break below 101.80 next week would open up lower targets like 100.85 and 99.60.

I remain cautiously bullish on the US dollar while above 101.80 on a daily closing basis.

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