9/3/2021
Today's NFP numbers were staggeringly poor relative to last month's actual and this month's expectation. This has led to the majors moving hard against the USD dips close to July lows. The unemployment rate, however, was able to decline from 5.4% to 5.2% and meet expectations.
Our outlook
We may continue to see a dollar sell-off in the short term as investors look at the bad NFP number. Although NFP was positive, it still was not anywhere near analysts expected it to be especially from last month's impressive number of jobs added. After taking a step back, unemployment was lower than last month and NFP was still positive; it is just at a slower rate than we were expecting this time around. More demand in the bond market is also negatively affecting the USD, so we might be seeing further downside in the short term.
Trade Setups
GBPUSD
GBPUSD on the 1D chart broke out of resistance and a falling long term trend line after NFP. This break, could send price higher to resistance around 1.39595 where there is a double top. New support formed around 1.38510.
EURUSD
EU looks promising as well, from a technical standpoint. Price is testing a previous high around 1.19046 on the daily chart and a break in this level could send the pair up to 1.19776.
USDCAD
UC broke under a rising trend line on the 1D chart and is coming down to support around 1.24784. Price is now back under its 50 and 200 Day moving averages and stuck in the consolidation zone again.
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