US dollar index (USDIDX) resumed an upward move at the end of June. Index climbed towards the resistance zone at 92.50, which halted previous upward impulse. US dollar is likely to become more volatile today at 1:30 pm BST when the US jobs report for June is released. Market expects an addition of 700k jobs and acceleration of wage growth from 2% YoY in May to 3.6% YoY in June. Unemployment rate is seen dropping from 5.8% to 5.7%.
Previous NFP report releases were marked on the chart below and as one can see, USDIDX moved lower following the past 3 releases. Interestingly, the index move lower regardless of NFP beat or miss. The most recent NFP release that saw USDIDX move higher was report for February (released on March 5) that showed a beat.
When it comes to the technical situation on USDIDX, we can see on the chart below that the index looks to be making a break above the aforementioned 92.50 resistance zone and is trading at a 2-month high. However, price has run into another hurdle - the downward trendline. Breaking above it could hint at a larger upward move.
USDIDX moved lower after 3 recent NFP releases. Report for February, released on March 5 (orange circle on the chart) was the most recent one to trigger a jump on USD market. Source: xStation5
