DXY: To consolidate intra-day – OCBC

The US Dollar (USD) traded little changed as markets mulled political risks in France and Korea. DXY was last at 106.51, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Consolidation likely intra-day

“US data remains the key focus this week – ISM services (Wed); initial jobless claims (Thu); payrolls (Fri). There is a good chance Nov NFP rebound sharply after hurricanes and major strikes may have distorted Oct NFP. Consensus is looking for +218k print while 6m average is at 131k. We caution that a lower print could see USD bears return.”

“Daily momentum is mild bearish though RSI is flat. Consolidation likely intra-day. Key support at 106.20 (21 DMA) if broken may see bearish momentum gather traction. Next support at 105.40 levels (38.2% fibo), 104.00/40 (50, 200 DMAs). Resistance at 106.50, 107.20.”