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      Employment Data to Act as Key Catalyst, Dollar Bulls Await Breakout Signal

      Eva Chen

      Summary:

      Dollar bulls are awaiting guidance on wage growth, with the February non-farm payroll data likely to be the last near-term highlight for the greenback.

      Buy

      USDX

      EXP
      Trading

      99.410

      Entry Price

      100.250

      TP

      97.700

      SL

      98.710 -0.050 -0.05%

      0

      Point

      Flat

      97.700

      SL

      CLOSING

      99.410

      Entry Price

      100.250

      TP

      Fundamentals

      The US dollar is set to edge higher if the upcoming US employment data proves strong enough to further dampen market expectations of a Fed rate cut.
      Against the backdrop of surging energy prices driven by the Middle East conflict and mounting inflation fears, a robust non-farm payroll reading alongside accelerating wage growth may prompt the market to further pare back rate-cut bets and lift the dollar.
      Nevertheless, given the potential impact of the conflict on business activity, Friday's employment data could mark the best reading the market sees for some time if the geopolitical standoff drags on.
      Employment Data to Act as Key Catalyst, Dollar Bulls Await Breakout Signal_1

      Technical Analysis

      From a medium-term structural perspective, the US Dollar Index remains in an oscillation and weak correction phase after pulling back from its previous highs. Having broken below the key psychological level of 100.00, market momentum has weakened markedly, weighing on short-term bullish sentiment for the greenback.
      Currently, the price has formed a periodic consolidation range around the 99.20 level, a sign that the market is biding its time for a new directional breakout.
      In terms of trend structure, the current price action is still a technical consolidation following a decline, with no clear signals of a trend reversal emerging yet. That said, the recent safe-haven trading logic leaves room for further upside in the index.

      Trade Recommendations

      Trade Direction: Buy
      Entry Price: 98.58
      Target Price: 100.25
      Stop Loss: 97.70
      Valid Until: April 05, 2026, 23:55:00
      Support: 98.95/98.66/98.26
      Resistance Levels: 99.67/100.18/100.40
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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