After breaching 91.00, the DXY had a hard time going any higher than 91.20. With this brief moment of weakness, trade setups for GBPUSD and US Oil were able to move into profit.
Price action analysis for GBPUSD showed a potential rally back up to the 4hr range high. The pair printed a hammer with a very long wick at the bottom, which is often an indicator for a bullish reversal. This intraday trade provided a zero drawdown entry which resulted in a quick gain of up to +35 pips.
US Oil is a commodity that won’t be too reliant on the DXY as price is moving on both technical and fundamental fronts. This swing trade is looking at the high created in 2019 as a final target. Price action traders have entered this trade and their first target has already been achieved.
Today’s ADP job numbers exceeded expectations as the US economy was able to add 173,000 jobs in the previous month. This may be an indicator for this Friday’s NFP result, it may not. It’s not always the case that the ADP and NFP job numbers correlate. Traders are encouraged to avoid trading the event, if possible.