Despite only adding less than half of the forecasted amount of jobs, the Dollar is up for the day. As a result, traders are eyeing potential intraday shorts for EURUSD and GBPUSD.
Today’s ADP report reported an additional 330,000 jobs versus the forecast of 695,000 jobs. Normally, this would lead to a bearish reaction for the US Dollar Index, but today’s reaction was quite the opposite. Today’s daily closure will be a hammer, suggesting a bullish Dollar for the short-term.
Both EURUSD and GBPUSD have made back the losses it faced against the Dollar during July. This initial bull run started near the end of July but has since had troubles pushing past above July’s high. A bearish daily closure for both pairs should provide traders a short to their respective range lows.
The main event this week is still the Non-Farm Payroll release. Despite today’s poor ADP job report, this Friday’s forecasts have remained unchanged. Traders could follow the bullish technical indicators for the Dollar and possibly see a positive report Friday morning.
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