US Dollar retreats from highs after Payrolls

The greenback, tracked by the US Dollar Index, has briefly tested the 96.70 area following upbeat Payrolls results, fresh multi-day peaks.

US Dollar bolstered by NFP

USD has revived after June’s Non-farm Payrolls have surprised markets to the upside, showing the economy added 287K jobs vs. 175k forecasted and 11K from the previous month (revised from 38K).

However, the up move lacked of follow through and it has quickly reversed, sending the index back to the red figures in the 96.30/20 band. DXY keeps its weekly gains nonetheless, propped up by the resurgence of risk aversion sentiment following the ‘Brexit’ fallout albeit with gains limited around the 96.80 area.

US Dollar relevant levels

The index is down 0.13% at 96.20 and a breach of 95.38 (low Jul.5) would target 95.26 (20-day sma) en route to 94.74 (55-day sma). On the flip side, the next up barrier lines up at 96.86 (high Jun.27) followed by 97.09 (high Mar.16) and finally 98.58 (high Mar.1).