Talking Points:
– USDOLLAR Remains Capped by Trendline Support Post NFP; May High in Place?
– EUR/USD to Retain Range Ahead of ECB on Failed Close Above 1.3870
– AUD/USD Holds 0.9200 Handle Ahead of RBA Interest Rate Decision

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is giving back the bullish reaction to the better-than-expected Non-Farm Payrolls (NFP) print, and the lack of momentum to break above trendline resistance continues to foster a bearish outlook for the greenback as price and the Relative Strength Index (RSI) retain the downward trend from earlier this month.

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10454.44

10495.38

10443.77

0.08

183.22%

Despite the marked decline in the jobless late, subdued wage growth paired with the ongoing deterioration in the Labor Force Participation Rate continues to limit the scope of seeing a material shift in the Fed’s policy outlook, and the dollar may continue to carve a series of lower highs and lower lows in May as the central bank continues to endorse its highly accommodative policy stance.

With that said, the USDOLLAR may have marked the high for May as the opening monthly range takes shape, and the greenback remains at risk of giving back the advance from back in October (10,354) unless we see a material shift in the Fed’s forward-guidance for monetary policy.

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Read More:
Price & Time: Key Levels to Watch After NFP
May Forex Seasonality Sees US Dollar Outperformance versus Aussie, Euro

USDOLLAR Daily

Chart – Created Using FXCM Marketscope 2.0
May Mark Another Failed Attempt to Close Above 10,470; May High in Place?
Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
Interim Support: 10,406 (1.618 expansion)

Release

GMT

Expected

Actual

Change in Non-Farm Payrolls (APR)