Dollar Index Will Rally to 80 Level by Strong US Data

Dollar Index Will Rally to 80 Level by Strong US Data

From Calculated Risk : Summary for Week Ending Oct 5th

“Most of the other economic data was somewhat positive too (even without housing!). Both ISM surveys (manufacturing and service) were weak, but above expectations. And auto sales were at the highest level since February 2008.

Also the impact of QE3 was evident in the MBA mortgage refinance index that increased to the highest level since 2009.

September Employment Report: 114,000 Jobs, 7.8% Unemployment Rate

Even though payroll growth was weak, this was a much stronger report than the last few months, especially considering the upward revisions to the July and August reports. And that doesn’t include the annual benchmark revision (that will also show more jobs).

This was slightly above expectations of 113,000 payroll jobs added.

The second graph shows the employment population ratio, the participation rate, and the unemployment rate. The unemployment rate decreased to 7.8% (red line). This is from the household report, and that report showed strong job growth.”

Indicators :

– RSI Period 14 with 30 level as oversold and 70 level as overbought.

– The 4X1, 2X1, 1X1, 1X2 and 1X4 Gann Angels.

– Gann’s Price&Timing Study.

– Simple Moving Average 50 Period (Blue), 100 Period (Red) and 200 Period (Green) on the chart.

US Dollar Index failed to be bearish continuation after US NFP reports. The closed candlestick was trend reversal are above major support, we will saw the price upward above 80 level.