It’s likely to be a slow trading day, as US stocks are closed and the bond market will close early. Many speculators are away, so we’re not expecting any big decisions, even in the FX markets, as everyone is waiting for the important non-farm payrolls report, which will be released tomorrow.wanted
 

Regarding the US dollar, we’ve seen an interesting rebound, about we warned our members earlier this week, as it was simply too early to call a potential top. Commodity currencies remain very weak, with progressions into fifth waves across the board. However, I’m not entirely sure if we are trading near the reversal zone for the Dollar Index itself. There is now a good chance that this is the final push to a new high, meaning we should watch for the fifth wave, which seems to belong to an ending diagonal. I still believe there is a chance for a US dollar sell-off later this month, but we need to wait for tomorrow’s non-farm payrolls report first, and then keep an eye on bearish signals next week, or when Trump is back. That may be the time when traders should start looking for potential dollar weakness.

Grega

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