Forex
Dollar Faces Resistance as Nonfarm Payrolls Loom
The US dollar has surged more than 3.5% off its August lows and is now facing a significant resistance zone, where the 2024 swing highs meet the upper edge of this year's uptrend.
This comes as U.S. nonfarm payrolls are set to be released, which could impact expectations for the Federal Reserve's next rate move, with a soft employment read potentially curbing these expectations.
According to Michael Boutros, Senior Market Analyst at StoneX, 'momentum here is still in overbought territory,' and U.S. nonfarm payrolls are set to land on top of this stretched US dollar setup.