Forex Trading Library

Intraday Analysis – Dollar Declines Despite Progressive NFP Data

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USDJPY continues the downturn
Chart depicting USDJPY downturn amid NFP data, as Japanese yen gains traction.

The Japanese yen gained more traction after mixed employment data from the US, including NFP Data. Even though NFP numbers were up, unemployment increased, leading to a decline in the greenback. The pair has declined to February’s lows towards 146.00 on the chart. The RSI’s oversold situation has triggered a ‘buy the dip’ situation, which has seen some consolidation. Bulls need to clear 147.30 before pushing for a continuation above 148.00. On the downside, 145.80 would be a second layer of support.

USOIL bounces off support
Chart displaying the bounce of USOIL off support as crude oil prices climb.

WTI crude continues to climb as the outlook for 2024 sees increased demand for black gold. After a month-long consolidation, prices are now in a bullish channel. A fall below the first support of 76.00 could trigger a correction towards 74.00. However, with the price likely to bounce, is now looking to recapture the 78.00 handle soon. After that, another run at the top channel to 80.25 could be tested.

SPX 500 turns lower

Chart illustrating the lower turn of SPX 500 as traders worry about the Fed's dovish stance.

The S&P 500 fell as traders worried the recent employment report could confirm the Fed’s dovish stance. The index is at a crossroads, and prices fall to 5100 on the chart. A failure to lift bids to 5150 indicates that the downward pressure lingers after the recent fall away from its record high. A drop below 5000 could see a sharp turnaround in fortunes for the index, especially as earnings season is over for the big players.

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