Our favorite monthly NFP has just been released 2 hours ago, with actual figures beating both estimates and previous month’s figures.
But the strange thing is that the USD didn’t seem to move in line with the data release.
Discrepancies in the markets like a deviation from an expected norm should raise some caution among traders.
Here on the DXY Daily and H4 chart, we can see that it is currently in a textbook ‘rising wedge’ pattern:
Have a closer look at what happened during the hour of NFP release:
It should act as a telltale sign that something is not quite right with the USD.
Extreme caution should be taken when trading USD pairs, especially with the Federal Funds Rate next Thursday morning at 0200hrs Singapore Time.
My personal bias would be a downside breakout for the USD as it doesn’t seem to have sufficient bullish momentum to sustain its uptrend, not even outstanding economic data could support it.