U.S. Dollar Index Intraday Analysis Ahead of ADP and ISM Non-Manufacturing

The ISM non-manufacturing PMI is related strongly with the NFP report coming out tomorrow, thus we would expect its release to have an impact on the currency. A high PMI reading means that the economic conditions of the nation are in a good situation that the economy opens new job positions and then leads to a high NFP number. The indicator is expected to tick lower at 56.6 in December from 57.2.


Moreover, traders will cautiously eye the ADP employment change, the number of jobs added in the private sector, to gauge if the jobs report tomorrow unveil any downside surprise. For December, the U.S. private sector is predicted to have added 170K jobs less than 216K jobs added in November.

U.S. Dollar Index Technical Outlook
Dollar index with delivery in March 2017 strongly rebound on the support level 101.73 giving signals that the uptrend momentum may continue in the short-term period. Real confirmation for another rising would be price overlapping and sustaining over 102.50 and the target will be focused at 103.00.

Something we need to have in mind with this market is that since the mid of December 2016, the dollar index with March 2017 delivery is traded in a choppy market. Clear direction for the long term would be a break of either levels 103.80 - which will signal for possible powerful increasing or decline below 101.73, which will signal for most likely sell-offs.

A look at the moving averages confirms sideways market as a lack of any angle. MACD histogram is below the zero line but gives an early buy signal. RSI is sloping upwards endorsing the thought for a retest of the 103.00 barrier.