NON-FARM PAYROLLS, ITS EFFECT ON THE DXY AND DOLLAR PAIRS

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 Good evening traders, I hope you're all having a great weekend and you're ready to tackle the new incoming trading week. During the previous trading week on Friday, the U.S. Bureau of Labor Statistics reported during NY session that the total nonfarm payroll employment rose by 311,000 in February and the unemployment rate edged up to 3.6%. This was a drop from January's report of 504,000, hence causing a strong decline in the dollar index from 105.380 inside the key H1 & H4 supply zone at 105.761 & 105.280 to the 1st H4 low at 104.200 and closed the week at 104.653. Price rallied into the key H1 & H4 supply zone which is the origin of the previous drop to the major H4 & daily demand zone at 101.295 & 102.472 filling the major daily range from the key H1 & H4 supply zone to the major H4 & daily demand zone and back to the key H1 & H4 supply zone. Price rallied into supply and faked out a break on H1 & H4 but on the daily chart price formed a rejection wick with candle close inside supply followed by a drop in 3 H4 bearish engulfing candles to 105.280 showing a potential bearish reversal. Price dropped to 105.100 with candle close below the key H1 & H4 supply then retraced to retest supply at 105.280 followed by a strong bearish drop on H1 & H4 to the next H4 low at 104.200 and still showing more bearish potential into the coming week. 
The sharp decline on the dollar index especially after the NFP report release caused a strong decline in all USDXXX pairs like USDCHF and USDCAD while all pairs XXXUSD pairs showed bullish momentum like EURUSD, GBPUSD, NZDUSD, etc. Also in XAUUSD (GOLD) which I was actively trading in, price gained strong bullish momentum rallying back to the major H1 & H4 supply zone at 1864.07 & 1856.93 and closing the trading week at 1868.04. I anticipate a continuation of the drop in the dollar index (DXY) into the next trading week and price to take out the liquidity at the H4 low at 104.200 and to drop lower to the next H4 low and demand at 102.800 to fill the 1st H4 range back to the H4 low and demand at 102.800.














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