Last Friday's NFP numbers practically ensured that the Fed cannot pause its rate hike for now. What this means is market participants are going to believe that the Fed may actually increase its rate hike quantum in March. This can be seen by how the Dollar reacted to the surprisingly string labor data last Friday.
Across many currency pairs, the dollar appears to had hit a bottom and is showing signs of a concerted recovery. If this nascent recovery turns into a torrent, we may see a more robust rally in the dollar. From the chart (H4), we can clearly see how the Dollar Index has strengthened since. Overnight on Monday (Feb 6), some light profit-takings have set in and if this extends lower in the hours and days ahead, we may get a chance to position longs for a possible challenge of the 105.70 level.
#1 Buy Limit @ 102.600. Amended to 102.450. Wed, Feb 8, 2023 13:08pm. Buy Order Cancelled Fri, Feb 10, 14:44pm.
#2 Buy Limit @ 102.300. Amended to 102.050. Wed, Feb 8, 2023 13:08pm. Order Cancelled Fri, Feb 10, 14:44pm.Stop @ 100.600.
Target @ 105.500.