The dollar was perched near multi-week highs on Friday, basking in its biggest gains in about a month after robust jobs data threw investors' focus on to the strength of the U.S. recovery and on the possibility of it driving policy tightening.
The next test comes later in the day when U.S. non-farm payrolls data is published. The Street's consensus forecast is for about 650,000 jobs to have been added in May, though the "whisper number" among traders is higher, closer to 800,000. Private payrolls - a bit of an unreliable guide - delivered a big beat overnight with an increase of 978,000, against forecasts of 650,000, which sent the dollar rallying.
Overall the market is bearish and after close selloff puts trade into a bear stance, positioned for declines to test under 1.2080. A close under 1.2080 warns for a wash towards the 1.1988 low. Any congestion trapped inside Wednesday’s range will remain aligned for selloffs.
Resistance 2 1.2165
Resistance 1 1.2146
Support 1 1.2100
Support 2 1.2080