Today's European trading session seems to be neutral for the US Dollar since the USD index cannot decide on the direction of the further momentum, thereby consolidating within the scope of the 80.47-80.67 price range. While being inside the range, the price managed to decline a little bit, which indicates temporary weakness shown by the US Dollar against a basket of 6 other majors.
By midday, the index was trading close to 80,55, Market Leader reports. At the same time, there is nothing special about the consolidation. Market participants are uncertain and do not want to excessive exposure amid the forthcoming economic stats, including labor market figures scheduled for today.
The labor market report is about to be released. The US Department of Labor is to release the weekly change in the amount of initial jobless claims. This is a major indicator of economic activity in the USA, so many investors and traders are closely watching the index and make their trading and investment decisions based on the latest figures.
Meanwhile, Masterforex-V Academy has analyzed the market situation to find out that the H1 chart of the USD index is still showing us a mid-term uptrend. Therefore, the bias is still bullish. Still, the price is currently moving within th scope of the 80.43 - 80.68 range, which may result in a reversal.
At this point, the reversal patterns are still being developed within the scope of the MF sloping channel (marked blue). The chart below indicates that the price rebounds from the border of the channel twice at 80.43 and 80.47.
The near-term prospects depend on the price reaction to the following levels:
Resistance: 80.63 + 80.66(68).
Support: 80.47 (49) + 80.31 + 80.20.
