The US Dollar Index is oscillating below 103.60 amid a cheerful market mood. (Pivot Orderbook analysis)

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• The US Dollar Index is oscillating below 103.60 amid a cheerful market mood.
• Fed policymakers: Parker and Jefferson have supported a pause in the policy-tightening spell in June.
• Upbeat ADP Employment data has strengthened expectations from the US NFP report.

The pair currently trades last at 103.56.

The previous day high was 104.7 while the previous day low was 104.01. The daily 38.2% Fib levels comes at 104.44, expected to provide resistance. Similarly, the daily 61.8% fib level is at 104.28, expected to provide resistance.

The US Dollar Index (DXY) is auctioning below the crucial support of 103.60 in the Tokyo session. The USD index was heavily dumped by the market participants in the New York session amid a cheerful market mood. Dovish commentary from Federal Reserve (Fed) policymakers eases chaos in financial markets.

S&P500 futures have carry-forwarded bullish sentiment lived on Thursday as a seventh straight contraction in United States ISM Manufacturing PMI bolstered the need of pausing the policy-tightening spell to avoid recession. However, upbeat labor market conditions are still pegging the need of raising interest rates further

Dovish commentary from Philadelphia Federal Reserve Bank President Patrick Harker as he stated on Thursday that he believes it is time for the central bank to ‘hit the stop button’ for at least one meeting shrugged off negative market sentiment. Also, Fed Governor Philip Jefferson said in a speech on Wednesday that pausing rate hikes at the next FOMC meeting would offer time to analyze more data before making a decision about the extent of additional tightening. He added that a pause does not mean that rates peaked. An escalating number of dovish Fed policymakers has trimmed hawkish Fed bets.

To get clarity about US labor market health, investors will keep an eye on the US Nonfarm Payrolls (NFP) data. Considering the upbeat release of upbeat US Automatic Data Processing (ADP) Employment Change (May), which showed an addition of 278K jobs, significantly higher than the estimates of 170K, US NFP could be solid too.

Analysts at SocGen believe job growth is moderating, yet the pace remains strong. They predict a 210K advance in May NFP, and the Unemployment Rate holding at the 3.4% low. On wages, THEY expect a more modest 0.2% MoM increase.

Technical Levels: Supports and Resistances

EURUSD currently trading at 103.56 at the time of writing. Pair opened at 104.22 and is trading with a change of -0.63 % .

The pair is trading above its 20 Daily moving average @ 102.92, above its 50 Daily moving average @ 102.35 , above its 100 Daily moving average @ 102.89 and below its 200 Daily moving average @ 105.51

The previous day high was 104.7 while the previous day low was 104.01. The daily 38.2% Fib levels comes at 104.44, expected to provide resistance. Similarly, the daily 61.8% fib level is at 104.28, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 103.92, 103.62, 103.23
• Pivot resistance is noted at 104.61, 105.0, 105.3

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