NON-FARM PAYROLLS RELEASE AND ITS EFFECT ON THE DOLLAR

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Good evening traders happy new month as we start off the last month of the economic quarter and financial year 2022. Its been quite a long year with many hurdles and opportunities in the financial markets and I hope every trader finishes this year strong. Into the markets today, the US Bureau of Labor Statistics reported that the total nonfarm payroll employment increased by 263,000 in November, and the unemployment rate was unchanged at 3.7 %. However, this is a decrease from the month of October's 284,000 nonfarm payroll employment hence causing a continuation of the sharp decline of the dollar since the start of this week. 
The Dollar index has been bearish all week with price declining from the lows of 108.100 to today's 104.700 where price gained most bearish momentum during the Fed's Chair Jerome Powell's speech on Wednesday night and today's NFP report. Price showed a steady decline from the major daily supply at 114.660 & 114.116 to the 1st daily demand level at 110.592 & 109.957 where price reversed at twice before accumulating enough orders to give price the momentum required to break the demand and continue with the decline. Price broke the 1st daily demand at 110.592 & 109.957, retested it as new supply then continued with the drop into this week with price having dropped to the 2nd daily demand level at 104.798 & 104.029 which is the origin of the previous rally to the major daily supply level. 






Price has filled the major daily range from the major daily demand level to the major daily supply level and back to the major daily demand. This decline in the dollar index has caused a sharp drop in all USDXXX pairs like USDCHF, USDJPY, USDCAD, USDZAR etc and a major rally in all XXXUSD pairs like EURUSD, GBPUSD, NZDUSD, AUDUSD. The dollar decline has also caused a strong rally in gold (XAUUSD) as they're inversely co-related ie when the dollar is bullish gold is bearish and vice versa hence investors run to gold as a safe haven when there's a decline of the dollar. 
 














The dollar drop has also had its effect on the US index markets causing strong bullish movements in US30, NAS100 and the SP500. This week has seen all three index markets close at new weekly highs having taken out the major supply levels in each showing a possible continuation of the bullish trend into next week especially with the current dollar weakness. 

















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