The dollar index, which tracks the strength of the US dollar against a basket of six currencies, was trading 0.15% higher during the London session and was hovering around 92.50.
The main market moving event today will be the labor market update for the month of April. The market expects 190,000 new jobs, up from 103,000 scored in March. The unemployment rate is projected to improve further to 4.0% and wage growth is forecast to stay at 2.7% annually. Greenback could be more sensitive to wage growth numbers and volatility is expected to be elevated after the release.
Thursday’s non-manufacturing ISM index slowed notably to 56.8 from 58.8, but the US dollar failed to react and traded in a narrow range.
The dollar index is now facing a strong resistance zone between 92.55 and 92.75, where many strong selling offers are located. This is the area of previous highs and lows. However, if bulls manage to conquer, another upside leg toward 94.20 could occur in the near term.
On the downside, the support is at the 92.00 level, where the 200 day moving average stands. As long as the index trades above, long positions could be preferred. In all cases we strongly recommend to have rigorous money and risk management.
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