Dollar could see bigger gains for two reasons
Oct 7 (Reuters) -The U.S. dollar could see an even bigger rise in coming sessions as there are fundamental and technical factors that point to bigger gains.
The dollar jumped to a seven-week high on Friday after data showed that U.S. employers added more jobs than expected in September, leading traders to pare bets that the Federal Reserve will cut rates again by 50 basis points at its November meeting.
The USD index, which tracks the dollar against a basket of six major currencies, has risen higher within the thick 101.900-102.500 region. On Friday it broke and registered a daily close above the 102.434 Fibo level, the 38.2% retrace of the 106.13 to 100.15 (June to September) drop.
If the USD index slips and sustains a break under the daily cloud base, that would shift the overall bias back to the downside. That would put the focus on the daily tenkan and kijun lines that have converged at 101.420.
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Martin Miller is a Reuters market analyst. The views expressed are his own; Editing by Alison Williams
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