US Dollar & ADP Employment Change: A support for the greenback is coming?
The greenback is still showing weakness across the board, as the recent US data had shown very negative numbers for the national economy's improvement on a quarterly basis and today at 12:30 GMT will be released the ADP employment change data, where the analysts are expecting a slight decline from 172K to 171K on the July's reading. It should be noted that the latest five releases were mixed, so we'll see how the numbers will be ahead of Friday's US NFP.
Our technical view for US Dollar Index at H4 chart is still bearish, as the index has been doing a consolidation below the 200 SMA. However, we're seeing that it's near to the 61.8% retracement level of the move from 93.01 to 97.59. A rebound above it can drive the DXY towards the 95.97 level as the next critical resistance. However, with a weaker-than-expected ADP reading, we could see a breakout below the 94.97 level, towards the 94.34 as the next south's target.