The Dollar-Correlated Majors Post Non-Farm Payrolls

The Non-Farm Payrolls number was an encouraging number for those who were concerned about a soft landing and recession. These are very bullish numbers on an already bullish strong equities market. So how this the weak U.S. Dollar effected? The Dollar rallied from 78.22 up to 78.81 on the news but swiftly pullback to prior resistance at 78.70. The better-then-expected NFP number did little to change the daily downtrend on the dollar and simply drove price to the top of the current range. Prices have furthered dropped since the report this morning as the current U.S. Dollar Index futures trades at 78.29 which is the morning's low. Net impact? Zero.

The Dollar-correlated majors were temporarily effected by the Dollar traveling across it's range but because the dollar is essentially "back where it started" the majors have resumed their pre-Non Farm Payroll direction.

Starting with a short term look at the EUR/USD on the 15 minute interval, you can see that the initial drive lower recovered very strongly and prices have returned to test 1.4150.

The USD/CHF has pulled back some from it's initial uptrend line bounce as prices are climbing upwards with a rising wedge pattern on the 240 minute chart. 1.1750 is currently support.

The 60 minute GBP/USD continues to trade within the symmetrical triangle pattern as the volatility and temporary strength of the U.S. Dollar was not enough to drive the GBP/USD down through bottom of the congestion. Currently the GBP/USD is trading higher up through the downtrend line resistance, triggering the triangle break to the upside.

Probably the least effected set up is the daily triangle breakout on the USD/JPY. Currently trading at 116.76 prices are still going to have to test 117.00 in order to show follow-through from thiscongestion breakout.