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Traders Fade USD-Strength after US Factory Orders

US Factory Orders for March came in at a 1.1% gain. Economists forecasts called for a 1.5% gain. The previous reading was revised down from 1.6% to 1.5%. Although this is still a positive reading, it fails to suggest a rebound in manufacturing after the harsh winter.

(source: tradingeconomics.com)

The USD Index shows the whipsaw reaction during the 5/2 US session.


(USD Index 1H chart, 5/2)

The reaction to US jobs data pushed the index to a new high on the week, but failed to close above it and held below the 10500 pivot area. Traders faded USD-strength to levels before the 5/2 US session, completely reversing the NFP-reaction and more.

The 4H chart shows that the failure to push above 10500 respected a previous support area as resistance, and thus maintains a bearish outlook for the USD.


(usd index 4h, 5/2)

In the near-term the 10427 support pivot is in focus, below that, the index has the 2014-low at 10400 in sight.